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Johannesburg - South African bonds were mixed in midday trade on Tuesday, owing to a much steeper curve and poor liquidity in the market, according to a local trader.
By 11:48, the benchmark R157 bond was trading at 6.445% from 6.500% at the previous close. The R207 was bid at 7.635% and offered at 7.700% from 7.655% and the R186 was trading at 7.980% from a close of 7.925%.
The rand was bid at R7.0249 against the dollar from its previous close of R7.0700.
The trader also said that the market was still reacting to South African GDP figures released yesterday.
"The issues in the treasury for the long-term are not helping. The market sees government receipts as being slower than expected and the market is anticipating some form of increased funding. So the curve is much steeper on the back of that," a local trader said.
SA's real gross domestic product (GDP) at market prices on a quarter on quarter (q/q) seasonally adjusted annualised (saa) basis rose by 1.3% in the second quarter of 2011 from a revised 4.5% (4.8%) in the first quarter, Statistics SA data showed on Tuesday.
Foreigners were net buyers of R1.285bn of South African bonds including repo transactions on Tuesday after net purchases of R245.843m worth of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R40.472bn on Tuesday from R15.128bn on Monday.
Foreigners were net buyers of R1.416bn of South African bonds excluding repo transactions on Tuesday after net purchases of R245.320m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R56.156bn 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 buyers of R47.078bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:48, the benchmark R157 bond was trading at 6.445% from 6.500% at the previous close. The R207 was bid at 7.635% and offered at 7.700% from 7.655% and the R186 was trading at 7.980% from a close of 7.925%.
The rand was bid at R7.0249 against the dollar from its previous close of R7.0700.
The trader also said that the market was still reacting to South African GDP figures released yesterday.
"The issues in the treasury for the long-term are not helping. The market sees government receipts as being slower than expected and the market is anticipating some form of increased funding. So the curve is much steeper on the back of that," a local trader said.
SA's real gross domestic product (GDP) at market prices on a quarter on quarter (q/q) seasonally adjusted annualised (saa) basis rose by 1.3% in the second quarter of 2011 from a revised 4.5% (4.8%) in the first quarter, Statistics SA data showed on Tuesday.
Foreigners were net buyers of R1.285bn of South African bonds including repo transactions on Tuesday after net purchases of R245.843m worth of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R40.472bn on Tuesday from R15.128bn on Monday.
Foreigners were net buyers of R1.416bn of South African bonds excluding repo transactions on Tuesday after net purchases of R245.320m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R56.156bn 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 buyers of R47.078bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
