• SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

  • Platinum handshake

    Officials who try to do what's right risk far more than blessed wrongdoers, says Solly Moeng.

All data is delayed
See More

Bonds firmer after US Fed comment

Jan 31 2013 11:02
I-Net Bridge
Johannesburg - The South African bond market had a firmer tone in early trade on Thursday after comments by the US Federal Open Market Committee (FOMC) on Wednesday evening sparked a US bond market rally‚ but dealers said volumes were minimal ahead of the producer price index (PPI) data at 11:30.

SA’s producer inflation is expected to have increased to 5.5% year on year (y/y) in December from 5.2% y/y in November‚ a survey by I-Net Bridge found.

Forecasts among 10 leading economists surveyed ranged from 5.3% y/y to 5.6% y/y.

“The US bond market rally is reflected in firmer offers‚ but as yet few investors are nibbling as they wait for the PPI data‚” a local bond dealer said.

At 9:04 the benchmark R186 was bid at 7.460% and offered at 7.430% from 7.460% at Wednesday’s close and 7.450% at Tuesday’s close.

The R157 was bid at 5.390% and offered at 5.370% from 5.390% at its previous close and the R207 was bid at 6.435% and offered at 6.405% from its previous close of 6.430%.

The rand was last bid at R9.0592 to the US dollar from R9.0187 at Wednesday’s close and R9.0208 at Tuesday’s close.

Foreigners were net sellers of R333.313m of South African bonds including repo transactions on Wednesday after net purchases of R504.687m of local bonds on Tuesday‚ data from the JSE shows.

RMB said in their morning report that yesterday’s disappointing US growth numbers reiterate that the local bond market should continue to receive decent offshore support in the global search for yield as the Fed remains highly unlikely to cut short its bond repurchasing programme in the midst of US growth woes.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

markets bonds


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote