Johannesburg - South African bonds remained firm
in midday play on Monday. A trader noted that market conditions were
By 11:50, the benchmark R157 bond was trading at 6.665% from
its previous close of 6.690%. The R207 was bid at 7.990% and offered at
7.985% from a previous close of 8.010% and the R186 was trading at
8.340% from its close of 8.375%.
The rand was bid at 7.8402 against the dollar from its previous close of 7.8175.
"The market seems to be treading water ahead of CPI. I doubt we'll see any major action before then," a trader said.
This week sees the release of September's CPI data and August's retail sales numbers on Wednesday.
Standard Banks analysts said the data would shed further light
on the local growth outlook and the prospects for another rate cut
"We maintain that increased expectations of monetary
accommodation could actually boost portfolio inflows, and thus see the
rand retaining its gains," they said.
International developments will also be closely watched.
Earlier, RMB analysts said it was a make or break week for Europe.
"We're likely to see pitched battles in Athens, both in the
streets as unions strike and in Parliament, where the latest austerity
plans need to be passed. The real focus is now on the European leaders'
"We need a firm plan from them to recapitalise banks, alter
the terms of the Greek debt restructuring and expand the bailout fund,"
They added that China would also be a focus this week as key data would be received, including 2Q11 GDP.
"Over the past few weeks fears have grown that their economy could be slowing rapidly," the analysts commented.
Foreigners were net sellers of R25.428m of South
African bonds including repo transactions on Friday after net sales of
R434.523m of local bonds on Thursday, data released by the JSE
Nominal cumulative volume was R12.910bn on Friday from R26.108bn on Thursday.
Foreigners were net sellers of R25.300m of South
African bonds excluding repo transactions on Friday after net sales of
R67.264m of local bonds on Thursday.
For the year to date, foreigners have been net buyers of
R40.432bn worth of local bonds, excluding repo transactions. In
2010 foreigners bought net R57.064bn rand worth of local bonds,
excluding repo transactions.
For the year to date for total transactions, including repo
transactions, foreigners have been net buyers of R32.167bn of
local bonds. In 2010 they bought net R44.541bn worth of bonds.