Johannesburg - The South African bond market was flat in
early trade on Monday‚ as traders waited for an expected rally in US Treasuries
following last week’s sell-off.
Dow Jones Newswires reported that a disappointing jobs
report diluted the week-long price slide in Treasury bonds‚ but the world’s
go-to safe-haven market still suffered its biggest weekly sell-off in nearly
A local trader said on Monday: “Most of the commentary we
have seen on last week’s price action said the sell-off in US Treasuries was
overdone‚ so we are looking for a rally from an oversold position. As yet that
has not taken place‚ which is why the market is flat at the moment.”
At 8.48am the benchmark R186 was trading at 7.360% from
Friday’s close of 7.365% and Thursday’s close of 7.295%. The R157 was bid at
5.390% and offered at 5.370% from 5.385% previously and the R207 was bid at
6.340% and offered at 6.310% from its previous close of 6.330%.
The rand was last bid at R8.5991 to the US dollar from
R8.5549 at Friday’s close and R8.5878 at Thursday’s close.
Foreigners were net sellers of R584.251m of South African
bonds including repo transactions on Friday after net purchases of R224.529m of
local bonds on Thursday‚ data from the JSE shows.
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