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Johannesburg – Bonds continued their recovery on Monday
morning and by 11:30 were up to 24 basis points firmer than Friday's closing
levels as markets continued to be cheered by the massive European Union
package announced to stabilise the euro and ease debt concerns.
By 11:30 the short-term government R154 bond was bid at 6.825% and offered at 6.805% after closing at 7.060% on Friday and the medium-term R157 was at 8.060% from 8.300% at its previous close. The long-term R186 was bid at 8.935% and offered at 8.915% from 9.150% previously.
The rand was bid at R7.4398 to the dollar from R7.5850 at its previous close. This marks a strong recovery in the rand, which was bid as high as R7.84 at one stage on Friday.
"The EU has put out a strong message and we opened strongly and have continued to recover," a local trader said.
Receding risk aversion after the EU reached a deal has benefitted global markets and local markets. All eyes will remain on global markets, as they would set the trend for the day, he added.
Dow Jones Newswires reports that the European Central Bank made a stunning U-turn in the early hours on Monday, saying it will intervene in the eurozone's public and private debt markets, among other things.
The move is aimed to "ensure depth and liquidity in those market segments which are dysfunctional," the ECB said in a snap statement.
Financial markets moved higher on the announcement, which came within one hour after eurozone finance ministers said they created a €500bn support plan for countries facing financial meltdown.
The money would be available to rescue eurozone economies that get into financial troubles, finance ministers said. The plan would consist of €440bn of loans from eurozone governments, €60bn from an EU emergency fund, plus €250bn from the IMF, diplomats and ministers said.
Foreigners were net sellers of R2.411bn of bonds including repo transactions on Friday after net sales of R327.585m of local bonds on Thursday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R33.035bn on Friday from R68.232bn on Thursday.
Foreigners were net sellers of R2.411bn of bonds excluding repo transactions on Friday after net sales of R330.157m of local bonds on Thursday.
In the year to date foreigners have been net buyers of R28.103bn worth of local bonds, excluding repo transactions.
So far for total transactions, including repo transactions, foreigners have been net buyers of R24.748bn worth of bonds.
In 2009 foreigners were net buyers of R27.755bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.
- I-Net Bridge
By 11:30 the short-term government R154 bond was bid at 6.825% and offered at 6.805% after closing at 7.060% on Friday and the medium-term R157 was at 8.060% from 8.300% at its previous close. The long-term R186 was bid at 8.935% and offered at 8.915% from 9.150% previously.
The rand was bid at R7.4398 to the dollar from R7.5850 at its previous close. This marks a strong recovery in the rand, which was bid as high as R7.84 at one stage on Friday.
"The EU has put out a strong message and we opened strongly and have continued to recover," a local trader said.
Receding risk aversion after the EU reached a deal has benefitted global markets and local markets. All eyes will remain on global markets, as they would set the trend for the day, he added.
Dow Jones Newswires reports that the European Central Bank made a stunning U-turn in the early hours on Monday, saying it will intervene in the eurozone's public and private debt markets, among other things.
The move is aimed to "ensure depth and liquidity in those market segments which are dysfunctional," the ECB said in a snap statement.
Financial markets moved higher on the announcement, which came within one hour after eurozone finance ministers said they created a €500bn support plan for countries facing financial meltdown.
The money would be available to rescue eurozone economies that get into financial troubles, finance ministers said. The plan would consist of €440bn of loans from eurozone governments, €60bn from an EU emergency fund, plus €250bn from the IMF, diplomats and ministers said.
Foreigners were net sellers of R2.411bn of bonds including repo transactions on Friday after net sales of R327.585m of local bonds on Thursday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R33.035bn on Friday from R68.232bn on Thursday.
Foreigners were net sellers of R2.411bn of bonds excluding repo transactions on Friday after net sales of R330.157m of local bonds on Thursday.
In the year to date foreigners have been net buyers of R28.103bn worth of local bonds, excluding repo transactions.
So far for total transactions, including repo transactions, foreigners have been net buyers of R24.748bn worth of bonds.
In 2009 foreigners were net buyers of R27.755bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.
- I-Net Bridge
