Related Articles
Top Stories
Feb 13 2012 12:15
Miner Xstrata says it has brought forward maintenance on two furnaces to assist Eskom to save power.
Feb 13 2012 10:43
Although jobs were created, the economy is still 420 000 jobs short of the peak employment level before the 2009 global financial crisis, says Adcorp.
Feb 13 2012 07:58
Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.
South African bond yields were sharply firmer in afternoon trade on Thursday, after the Reserve Bank's Monetary Policy Committee announced a 50 basis point cut in the repo rate to 6.0%.
By 15:45 the benchmark R157 bond was at 7.090% from 7.200% at its close on Wednesday. The benchmark R207 was at 7.800% from 7.865% and the R186 was bid at 7.750% from 7.880%.
The rand was bid at 7.1551 to the dollar from 7.2285 at its previous close.
The consensus expectation in the marketplace had been for a 50 basis point cut, according to a survey of 14 leading economists polled by I-Net Bridge.
Bank governor Gill Marcus said the MPC views this action to be consistent with the continued attainment of the inflation target, having given due regard to the risks to the outlook.
"he scope for further downward movement is seen to be limited, but this will be assessed on an ongoing basis. Our approach remains forward-looking and is informed by close examination of the data and future developments," she said.
"The market got what it expected. Bond are firmer on the rate cut decision. Right now we're still digesting the speech but looking ahead we feel the Governor will again cut rates in November, players will start to price a further cut in," said a local trader.
Foreigners were net buyers of R545.201m rand of South African bonds including repo transactions on Wednesday, after net purchases of R3.840bn of local bonds on Tuesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R44.533bn on Wednesday from R175.708bn on Tuesday.
Foreigners were net buyers of R781.418m of South African bonds excluding repo transactions on Wednesday after net purchases of R3.830bn of local bonds on Tuesday.
In the year to date foreigners have been net buyers of R75.686bn worth of local bonds, excluding repo transactions.
So far for total transactions, including repo transactions, foreigners have been net buyers of R67.988bn worth of bonds.
In 2009 foreigners were net buyers of R27.755bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.