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Johannesburg - South African bonds were firmer in
quiet midday trade on Wednesday, driven by the stronger rand.
The National Treasury announced that it would auction R1.1bn worth of R207 bonds and R1bn worth of R186 bonds on November 8, at its weekly auction.
By 11:50, the benchmark R157 bond was trading at 6.590% from its previous close of 6.635%. The R207 was bid at 7.890% and offered at R7.870% from a previous close of 7.910% and the R186 was bid at 8.380% and offered at 8.360% from its close of 8.415%.
The rand was bid at 8.0146 against the dollar from its previous close of 8.0475.
"We're looking a bit better, it's all currency driven. The rand has pulled back slightly from yesterday's closing levels. There's not much on the go, it's very quiet. It looks like when guys get stock they just clear flow, the market is very illiquid," said a local trader.
Earlier, RMB analysts noted in a report that though Europe remained the main issue for the markets, the Fed policy announcement was due tonight.
"No changes are expected but we'll be watching for signs that they are slowly moving towards QE3. The latest data, meanwhile, continues to point to the US economy avoiding recession but stumbling rather than surging forward," they said.
Foreigners were net sellers of R1.071bn of South African bonds including repo transactions on Tuesday after net purchases of R389.307m of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R176.362bn on Tuesday from R52.130bn on Monday.
Foreigners were net sellers of R1.071bn of South African bonds excluding repo transactions on Tuesday after net purchases of buyers of R387.785m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R44.363bn 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 R36.025bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
The National Treasury announced that it would auction R1.1bn worth of R207 bonds and R1bn worth of R186 bonds on November 8, at its weekly auction.
By 11:50, the benchmark R157 bond was trading at 6.590% from its previous close of 6.635%. The R207 was bid at 7.890% and offered at R7.870% from a previous close of 7.910% and the R186 was bid at 8.380% and offered at 8.360% from its close of 8.415%.
The rand was bid at 8.0146 against the dollar from its previous close of 8.0475.
"We're looking a bit better, it's all currency driven. The rand has pulled back slightly from yesterday's closing levels. There's not much on the go, it's very quiet. It looks like when guys get stock they just clear flow, the market is very illiquid," said a local trader.
Earlier, RMB analysts noted in a report that though Europe remained the main issue for the markets, the Fed policy announcement was due tonight.
"No changes are expected but we'll be watching for signs that they are slowly moving towards QE3. The latest data, meanwhile, continues to point to the US economy avoiding recession but stumbling rather than surging forward," they said.
Foreigners were net sellers of R1.071bn of South African bonds including repo transactions on Tuesday after net purchases of R389.307m of local bonds on Monday, data released by the JSE shows.
Nominal cumulative volume was R176.362bn on Tuesday from R52.130bn on Monday.
Foreigners were net sellers of R1.071bn of South African bonds excluding repo transactions on Tuesday after net purchases of buyers of R387.785m of local bonds on Monday.
For the year to date, foreigners have been net buyers of R44.363bn 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 R36.025bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
