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Johannesburg - South African bonds were slightly
firmer in quiet midday trade on Tuesday in line with the strong rand,
after the release of key gross domestic product (GDP) figures.
The seasonally adjusted real GDP at market prices for the fourth quarter of 2011 increased by an annualised rate of 3.2% compared with an increase of 1.7% (1.4%) in the third quarter.
The unadjusted real GDP at market prices for the fourth quarter of 2011 increased by 2.9% compared with the fourth quarter of 2010.
According to Chris Hart, an economist at Investment Solutions, the Q4 GDP figure was reasonably encouraging.
"However, we are seeing signs of a potential slowing of momentum in the economy. Data like the leading indicator is suggesting that momentum is slowing and electricity consumption data is also suggesting a slowdown.
"This Q4 GDP figure may well be the high point in growth for the next few quarters if we don't see a pick-up in momentum," he said.
At 11:50, the benchmark R157 bond was trading at 6.645% from its previous close of 6.660%. The R207 was trading at 7.790% from a previous close of 7.780% and the R186 was trading at 8.280% from its close of 8.285%.
The rand was bid at 7.5188 against the dollar from its previous close of 7.5517.
"We're a touch firmer after the figures, but there's nothing really happening, we're just tracking the rand. We're trading in narrow ranges here - 67-64. Nothing much on the go, the market is thin," a trader said.
At its weekly auction, the National Treasury received bids totalling R2.69bn for R700m worth of R203 bonds at a clearing yield of 7.220%, bids totalling R1.44bn for R700m worth of R207 bonds at a clearing yield of 7.770% and bids totalling R2.8bn for R700m worth of R213 bonds at a clearing yield of 8.660%.
"The auction was well supported, particularly the back-end stuff," the trader said.
Foreigners were net sellers of R451.317m of South African bonds including repo transactions on Monday after net purchases of R652.909m of local bonds on Friday, data released by the JSE shows.
Nominal cumulative volume was R50.380bn on Monday from R89.364bn on Friday.
Foreigners were net sellers of R438.600m of South African bonds excluding repo transactions on Monday after net purchases of R652.611m of local bonds on Friday.
For the year to date foreigners have been net buyers of R13.080bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.
In the year to date foreigners have been net buyers of R11.689bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
The seasonally adjusted real GDP at market prices for the fourth quarter of 2011 increased by an annualised rate of 3.2% compared with an increase of 1.7% (1.4%) in the third quarter.
The unadjusted real GDP at market prices for the fourth quarter of 2011 increased by 2.9% compared with the fourth quarter of 2010.
According to Chris Hart, an economist at Investment Solutions, the Q4 GDP figure was reasonably encouraging.
"However, we are seeing signs of a potential slowing of momentum in the economy. Data like the leading indicator is suggesting that momentum is slowing and electricity consumption data is also suggesting a slowdown.
"This Q4 GDP figure may well be the high point in growth for the next few quarters if we don't see a pick-up in momentum," he said.
At 11:50, the benchmark R157 bond was trading at 6.645% from its previous close of 6.660%. The R207 was trading at 7.790% from a previous close of 7.780% and the R186 was trading at 8.280% from its close of 8.285%.
The rand was bid at 7.5188 against the dollar from its previous close of 7.5517.
"We're a touch firmer after the figures, but there's nothing really happening, we're just tracking the rand. We're trading in narrow ranges here - 67-64. Nothing much on the go, the market is thin," a trader said.
At its weekly auction, the National Treasury received bids totalling R2.69bn for R700m worth of R203 bonds at a clearing yield of 7.220%, bids totalling R1.44bn for R700m worth of R207 bonds at a clearing yield of 7.770% and bids totalling R2.8bn for R700m worth of R213 bonds at a clearing yield of 8.660%.
"The auction was well supported, particularly the back-end stuff," the trader said.
Foreigners were net sellers of R451.317m of South African bonds including repo transactions on Monday after net purchases of R652.909m of local bonds on Friday, data released by the JSE shows.
Nominal cumulative volume was R50.380bn on Monday from R89.364bn on Friday.
Foreigners were net sellers of R438.600m of South African bonds excluding repo transactions on Monday after net purchases of R652.611m of local bonds on Friday.
For the year to date foreigners have been net buyers of R13.080bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.
In the year to date foreigners have been net buyers of R11.689bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
