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Johannesburg - South African bonds remained relatively flat in lacklustre trade at noon on Thursday, shrugging off worse than expected producer price inflation data for June.
By 11:50, the benchmark R157 bond was trading at 7.365% from 7.350% at its previous close. The R207 was bid at 8.270% and offered at 8.245% from 8.250%, and the R186 was bid at 8.490% and offered at 8.480% from 8.485%.
The rand was bid at 6.6622 against the dollar from its previous close of 6.6762.
"The PPI data had very little impact on bonds - maybe a point. We were hoping for some life - but nothing," a local bond trader lamented.
SA's producer price index (PPI) registered growth of 7.4% year on year (y/y) in June from 6.9% y/y in May, Statistics South Africa (Stats SA) data on Thursday showed.
The PPI lifted 4.4% on a monthly basis from 0.4% in May.
PPI was expected to have increased at 6.8% year on year (y/y) in June from the 6.9% y/y seen in May, according to a recent survey by I-Net Bridge.
Forecasts among seven leading economists surveyed ranged from 6.0% y/y to 7.0% y/y.
Meanwhile, global issues continue to dominate. RMB analysts said in a daily report that the debt concerns in the US are starting to generate some panicky trade, while across the Atlantic the PIIGS issues are back in focus. Risk assets are under pressure as result, but so too are both the Euro and the US dollar.
"The headlines in today's Financial Times sum up the US issues; the front page in the main section reads "US debt plans in chaos", that on the inside section reads "Insurance cost against US default hits record," they wrote.
The House of Representatives votes on a key budget bill today. There is an outside chance that it is passed, which would open the way for a compromise with the Senate and so perhaps eventually a resolution to the crisis. More likely it will fail, risking a downward spiral in financial markets, RMB added.
Foreigners were net buyers of R731.257m of South African bonds including repo transactions on Wednesday, after net sales of R1.624bn of local bonds on Tuesday, data released by the JSE shows.
Nominal cumulative volume was R52.490bn on Wednesday from R181.586bn on Tuesday.
Foreigners were net buyers of R728.681m of South African bonds excluding repo transactions on Wednesday after net sales of R1.628bn of local bonds on Tuesday.
For the year to date, foreigners have been net buyers of R41.464bn 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 R32.561bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:50, the benchmark R157 bond was trading at 7.365% from 7.350% at its previous close. The R207 was bid at 8.270% and offered at 8.245% from 8.250%, and the R186 was bid at 8.490% and offered at 8.480% from 8.485%.
The rand was bid at 6.6622 against the dollar from its previous close of 6.6762.
"The PPI data had very little impact on bonds - maybe a point. We were hoping for some life - but nothing," a local bond trader lamented.
SA's producer price index (PPI) registered growth of 7.4% year on year (y/y) in June from 6.9% y/y in May, Statistics South Africa (Stats SA) data on Thursday showed.
The PPI lifted 4.4% on a monthly basis from 0.4% in May.
PPI was expected to have increased at 6.8% year on year (y/y) in June from the 6.9% y/y seen in May, according to a recent survey by I-Net Bridge.
Forecasts among seven leading economists surveyed ranged from 6.0% y/y to 7.0% y/y.
Meanwhile, global issues continue to dominate. RMB analysts said in a daily report that the debt concerns in the US are starting to generate some panicky trade, while across the Atlantic the PIIGS issues are back in focus. Risk assets are under pressure as result, but so too are both the Euro and the US dollar.
"The headlines in today's Financial Times sum up the US issues; the front page in the main section reads "US debt plans in chaos", that on the inside section reads "Insurance cost against US default hits record," they wrote.
The House of Representatives votes on a key budget bill today. There is an outside chance that it is passed, which would open the way for a compromise with the Senate and so perhaps eventually a resolution to the crisis. More likely it will fail, risking a downward spiral in financial markets, RMB added.
Foreigners were net buyers of R731.257m of South African bonds including repo transactions on Wednesday, after net sales of R1.624bn of local bonds on Tuesday, data released by the JSE shows.
Nominal cumulative volume was R52.490bn on Wednesday from R181.586bn on Tuesday.
Foreigners were net buyers of R728.681m of South African bonds excluding repo transactions on Wednesday after net sales of R1.628bn of local bonds on Tuesday.
For the year to date, foreigners have been net buyers of R41.464bn 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 R32.561bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
