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Johannesburg - South African bonds were as much
as 6 points firmer in midday trade on Wednesday as the market tracked
the local currency higher.
By 11:45, the benchmark R157 bond was trading at 6.640% from its previous close of 6.700%. The R207 was bid at 7.985% and offered at 7.975% from a previous close of 8.040% and the R186 was trading at 8.340% from its close of 8.380%.
The rand was bid at 7.7743 against the dollar from its previous close of 7.9195.
A local trader said the stronger rand was driving the market, particularly at the front-end while the back-end was a touch weaker on the back of the poorly-bid auction on Tuesday.
Over and above that the local trader said that there were expectations that National Treasury would release more long stock at next week's auction, which could see prices revised downwards.
With no appetite at the back-end of the curve supply will simply exceed demand.
Later on Wednesday all eyes will be on the August manufacturing data, which is scheduled to be released by Statistics SA.
The figures are expected to show that the local manufacturing sector is struggling amid slowing global activity, and economic and financial challenges in SA's main export markets.
Manufacturing production fell 6.0% year on year (y/y) in July after a 0.8% growth in June.
Foreigners were net buyers of R2.241bn of South African bonds including repo transactions on Tuesday after net purchases of R515.567m of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R34.653bn on Tuesday from R19.803bn on Monday.
Foreigners were net buyers of R2.242bn of South African bonds excluding repo transactions on Tuesday after net purchases of R510.841m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R39.599bn 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 R31.152bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:45, the benchmark R157 bond was trading at 6.640% from its previous close of 6.700%. The R207 was bid at 7.985% and offered at 7.975% from a previous close of 8.040% and the R186 was trading at 8.340% from its close of 8.380%.
The rand was bid at 7.7743 against the dollar from its previous close of 7.9195.
A local trader said the stronger rand was driving the market, particularly at the front-end while the back-end was a touch weaker on the back of the poorly-bid auction on Tuesday.
Over and above that the local trader said that there were expectations that National Treasury would release more long stock at next week's auction, which could see prices revised downwards.
With no appetite at the back-end of the curve supply will simply exceed demand.
Later on Wednesday all eyes will be on the August manufacturing data, which is scheduled to be released by Statistics SA.
The figures are expected to show that the local manufacturing sector is struggling amid slowing global activity, and economic and financial challenges in SA's main export markets.
Manufacturing production fell 6.0% year on year (y/y) in July after a 0.8% growth in June.
Foreigners were net buyers of R2.241bn of South African bonds including repo transactions on Tuesday after net purchases of R515.567m of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R34.653bn on Tuesday from R19.803bn on Monday.
Foreigners were net buyers of R2.242bn of South African bonds excluding repo transactions on Tuesday after net purchases of R510.841m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R39.599bn 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 R31.152bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
