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Johannesburg - South African bonds were still weak in late trade on Wednesday as comments made by SA Reserve Bank (Sarb) governor Gill Marcus continued to weigh on the market.
In a speech on Monday evening, Marcus pointed to the potential upside risks to inflation emanating from high oil and food prices.
By 15:50, the benchmark R157 bond was trading at 7.850% from its previous close of 7.790%, while the R207 was bid at 8.705% from its previous close of 8.650%. The R186 was trading at 9.015% from its previous close of 8.950%.
The rand was bid at 6.8206 to the dollar from its previous close of 6.8318.
"We had a bit of a sell-off earlier, the market reacted to Marcus's comments," a local trader said.
Another trader added: "Marcus last night said she wouldn't be soft on inflation going forward, implying that they would obviously use monetary policy to stem any inflationary uptick."
Earlier in the day, the Sarb said that credit extension to the private sector (PSCE) grew at a rate of 5.43% year on year (y/y) in February from 5.01% in January.
The rate of growth of SA's broad M3 money supply measure rose by 7.55% y/y in February from 8.19% y/y in January.
The rate of growth in PSCE was expected to have registered 5.1% y/y, according to a survey by I-Net Bridge, and M3 was expected to have increased at 8.5% y/y.
Foreigners were net buyers of R342.805m of South African bonds including repo transactions on Tuesday, after net purchases of R246.022m of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R173.140bn on Tuesday from R50.062bn on Monday.
Foreigners were net buyers of R338.726m of South African bonds excluding repo transactions on Tuesday, after net sales of R222.906m of local bonds on Monday.
For the year to date, foreigners have been net sellers of R9.183bn 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 sellers of R11.512bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
In a speech on Monday evening, Marcus pointed to the potential upside risks to inflation emanating from high oil and food prices.
By 15:50, the benchmark R157 bond was trading at 7.850% from its previous close of 7.790%, while the R207 was bid at 8.705% from its previous close of 8.650%. The R186 was trading at 9.015% from its previous close of 8.950%.
The rand was bid at 6.8206 to the dollar from its previous close of 6.8318.
"We had a bit of a sell-off earlier, the market reacted to Marcus's comments," a local trader said.
Another trader added: "Marcus last night said she wouldn't be soft on inflation going forward, implying that they would obviously use monetary policy to stem any inflationary uptick."
Earlier in the day, the Sarb said that credit extension to the private sector (PSCE) grew at a rate of 5.43% year on year (y/y) in February from 5.01% in January.
The rate of growth of SA's broad M3 money supply measure rose by 7.55% y/y in February from 8.19% y/y in January.
The rate of growth in PSCE was expected to have registered 5.1% y/y, according to a survey by I-Net Bridge, and M3 was expected to have increased at 8.5% y/y.
Foreigners were net buyers of R342.805m of South African bonds including repo transactions on Tuesday, after net purchases of R246.022m of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R173.140bn on Tuesday from R50.062bn on Monday.
Foreigners were net buyers of R338.726m of South African bonds excluding repo transactions on Tuesday, after net sales of R222.906m of local bonds on Monday.
For the year to date, foreigners have been net sellers of R9.183bn 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 sellers of R11.512bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
