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Johannesburg - South African bonds were firmer in
midday trade on Thursday, after the release of producer inflation data.
SA's producer price index (PPI) registered growth of 8.3% year-on-year (y/y) in February from 8.9% y/y in January, Statistics SA data released on Thursday showed.
The PPI, on a monthly basis, was 0.9% compared with 0.3% m/m in January.
SA's PPI was expected to have clocked in at 8.0% y/y, a survey by I-Net Bridge found, with forecasts among 13 leading economists surveyed ranging from 7.6% y/y to 8.9% y/y.
At 11:50, the benchmark R157 bond was at trading 6.785% from its previous close of 6.810%. The R207 was bid at 7.905% and offered at 7.875% from a previous close of 7.910%, and the R186 was trading at 8.435% from its close of 8.465%.
The rand was bid at 7.7233 against the dollar from its previous close of 7.6711.
The monetary policy committee (MPC) will announce its repo rate decision at 15:00.
Of the 14 economists surveyed by I-Net Bridge, none foresaw a rate cut on the cards. The interest rate was cut by 50 basis points to 5.5% in November 2010.
A local bond trader said no "dramatic moves" were expected ahead of the governor's speech.
Foreigners were net buyers of R296.759m of South African bonds including repo transactions on Wednesday after net purchases of R1.223bn of local bonds on Tuesday, data released by the JSE shows.
Nominal cumulative volume was R73.308bn on Wednesday from R218.995bn on Tuesday.
Foreigners were net buyers of R295.856m of South African bonds excluding repo transactions on Wednesday after net purchases of R1.303bn of local bonds on Tuesday.
For the year to date foreigners have been net buyers of R19.558bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.
In the year to date foreigners have been net buyers of R16.367bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
SA's producer price index (PPI) registered growth of 8.3% year-on-year (y/y) in February from 8.9% y/y in January, Statistics SA data released on Thursday showed.
The PPI, on a monthly basis, was 0.9% compared with 0.3% m/m in January.
SA's PPI was expected to have clocked in at 8.0% y/y, a survey by I-Net Bridge found, with forecasts among 13 leading economists surveyed ranging from 7.6% y/y to 8.9% y/y.
At 11:50, the benchmark R157 bond was at trading 6.785% from its previous close of 6.810%. The R207 was bid at 7.905% and offered at 7.875% from a previous close of 7.910%, and the R186 was trading at 8.435% from its close of 8.465%.
The rand was bid at 7.7233 against the dollar from its previous close of 7.6711.
The monetary policy committee (MPC) will announce its repo rate decision at 15:00.
Of the 14 economists surveyed by I-Net Bridge, none foresaw a rate cut on the cards. The interest rate was cut by 50 basis points to 5.5% in November 2010.
A local bond trader said no "dramatic moves" were expected ahead of the governor's speech.
Foreigners were net buyers of R296.759m of South African bonds including repo transactions on Wednesday after net purchases of R1.223bn of local bonds on Tuesday, data released by the JSE shows.
Nominal cumulative volume was R73.308bn on Wednesday from R218.995bn on Tuesday.
Foreigners were net buyers of R295.856m of South African bonds excluding repo transactions on Wednesday after net purchases of R1.303bn of local bonds on Tuesday.
For the year to date foreigners have been net buyers of R19.558bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.
In the year to date foreigners have been net buyers of R16.367bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
