Johannesburg - South African bonds were firmer in quiet midday trade on Friday, on the back of a stronger local currency.
By 11:50, the benchmark R157 bond was trading at 7.865% from its previous close of 7.900%, while the R207 was bid at 8.780% from its previous close of 8.795%. The R186 was bid at 8.970% from its previous close of 8.980%.
The rand was bid at 7.0302 to the dollar from its previous close of 7.0813.
"We're firmer on the back of a better-looking rand. Other than that, there's not a great deal going on. We're not seeing big volumes go through here. We'll be rand dependent for the rest of the session," said a local trader.
Earlier, Standard Bank said that, with continued volatility generated by global developments, positions in SA's rates were likely to be thinned before the long weekend.
"While bonds have been responding in a continuous manner to the elevation in energy prices and simultaneous rand weakness, another day of higher longer-dated yields does appear probable," it said.
Foreigners were net sellers of R625.122m of South African bonds including repo transactions on Thursday after net purchases of R2.608bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R77.679bn on Thursday from R68.102bn on Wednesday.
Foreigners were net sellers of R504.549m of South African bonds excluding repo transactions on Thursday after net purchases of R2.844bn of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R15.170bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net sellers of R17.339bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.