• The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

  • Web of dependency

    Zupta defenders are playing cat and mouse with ratings agencies, says Solly Moeng.

All data is delayed
Loading...
See More

Bonds in limbo‚ awaiting budget

Feb 11 2013 12:46
I-Net Bridge
Johannesburg - The South African bond market was little moved at noon on Monday despite the softer rand.

“The benchmark R186 was trading one basis point weaker‚ with bond yields relatively unchanged from Friday‚ ignoring the slight weaker rand and awaiting the budget speech‚” said Steve Arnold‚ head of bonds at Investec.

“There is a very large duration bond auction tomorrow‚ and if there is low interest in the auction‚ this could cause bond yields to climb‚” he said.

At 12:00 the benchmark R186 was bid at 7.305% and offered at 7.275% from 7.280% at Friday’s close. The R157 was bid at 5.320% and offered at 5.300% from 5.290% at its previous close and the R207 was bid at 6.295% and offered at 6.265% from its previous close of 6.260%.

The rand was last bid at R8.9014/$ from R8.8693 overnight.

Rand Merchant Bank said in a note that Finance Minister Gordhan would be hard pressed to pull some good news rabbits out of the hat on budget day‚ which may sour sentiment towards South African government bonds both locally and more importantly from an offshore perspective.

“The budget will be the focus point for the next few weeks‚ especially with this coming week very low on data with only retail sales‚ manufacturing and gold production numbers due for release‚” the bank said. 

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

markets bonds

NEXT ON FIN24X

 
 
 

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
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

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

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote

Loading...