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Johannesburg - South African bonds were mostly untraded in early trade on Friday, with little in the way of news to move the market. The longer-dated R186 was a touch firmer.
By 08:55, the benchmark R157 bond was trading at 7.525% from its previous close of 7.540%. The R207 was bid at 8.300% and offered at 8.275% from 8.295% and the R186 was bid 8.495% and offered 8.475% from 8.500%.
The rand was bid at R6.8711 to the dollar from its previous close of R6.9019.
Standard Bank said in a morning report that SA bonds were at, or approaching, recent resistance levels.
"A strong run over the whole of this week could see yields struggle to break significantly lower today, as short-covering appears to have run its course and some profit-taking is due. Instead, this morning's ILB auction could prove a focal point for interest rate markets, as real yields have compressed significantly in recent weeks and there is increasing doubt as to how much further this can be extended," the analysts said.
With no local data due today, local markets will eye their international counterparts for direction.
Foreigners were net sellers of R113.464m of South African bonds including repo transactions on Thursday after net purchases R495.074m of local bonds on Tuesday, Bond Exchange of South Africa statistics show. Markets were closed Wednesday for a public holiday.
Nominal cumulative volume was R65.635bn on Thursday from R58.753bn on Tuesday.
Foreigners were net sellers of R95.305m of South African bonds excluding repo transactions on Thursday after net purchases of R492.959m of local bonds on Tuesday.
For the year to date, foreigners have been net buyers of R19.764bn 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 R11.925bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 08:55, the benchmark R157 bond was trading at 7.525% from its previous close of 7.540%. The R207 was bid at 8.300% and offered at 8.275% from 8.295% and the R186 was bid 8.495% and offered 8.475% from 8.500%.
The rand was bid at R6.8711 to the dollar from its previous close of R6.9019.
Standard Bank said in a morning report that SA bonds were at, or approaching, recent resistance levels.
"A strong run over the whole of this week could see yields struggle to break significantly lower today, as short-covering appears to have run its course and some profit-taking is due. Instead, this morning's ILB auction could prove a focal point for interest rate markets, as real yields have compressed significantly in recent weeks and there is increasing doubt as to how much further this can be extended," the analysts said.
With no local data due today, local markets will eye their international counterparts for direction.
Foreigners were net sellers of R113.464m of South African bonds including repo transactions on Thursday after net purchases R495.074m of local bonds on Tuesday, Bond Exchange of South Africa statistics show. Markets were closed Wednesday for a public holiday.
Nominal cumulative volume was R65.635bn on Thursday from R58.753bn on Tuesday.
Foreigners were net sellers of R95.305m of South African bonds excluding repo transactions on Thursday after net purchases of R492.959m of local bonds on Tuesday.
For the year to date, foreigners have been net buyers of R19.764bn 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 R11.925bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
