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Johannesburg - The South African bond market was softer in midday trade on Tuesday‚ after the rand reacted to worse-than-expected current account data‚ despite a good weekly bond auction.
“Bonds are softer on the data. Our move was fairly mild as the good auction provided support for the market‚” a local bond dealers said.
At 11:45 the benchmark R186 was trading at 7.385% from 7.380% at Monday’s close. The R157 was trading at 5.375% from 5.355% at its previous close and the R207 was bid at 6.360% and offered at 6.335% from its previous close of 6.355%.
The rand was bid at R9.1735/$ after touching a worst level of R9.2107/$ from R9.1057/$ at Monday’s close.
The South Africa Reserve Bank’s March quarterly bulletin showed that the current account deficit was 6.5% (R212.6bn) of gross domestic product (GDP)‚ compared to market expectations of between 6.3% and 6.4%.
A survey of eight leading economists by I-Net Bridge had forecast a current account deficit of 6.4% of GDP in the fourth quarter.
The deficit on the current account amounted to 6.3% of GDP last year compared with a deficit of 3.4% in 2011.
The South African Treasury on Tuesday allotted R500m of R213 bonds at a clearing yield of 7.990%‚ R800m of R209 bonds at a clearing yield of 8.280% and R800m of R214 bonds at a clearing yield of 8.330%.
It received bids worth R1.295bn‚ R2.69bn and R2.91bn respectively.
“Bonds are softer on the data. Our move was fairly mild as the good auction provided support for the market‚” a local bond dealers said.
At 11:45 the benchmark R186 was trading at 7.385% from 7.380% at Monday’s close. The R157 was trading at 5.375% from 5.355% at its previous close and the R207 was bid at 6.360% and offered at 6.335% from its previous close of 6.355%.
The rand was bid at R9.1735/$ after touching a worst level of R9.2107/$ from R9.1057/$ at Monday’s close.
The South Africa Reserve Bank’s March quarterly bulletin showed that the current account deficit was 6.5% (R212.6bn) of gross domestic product (GDP)‚ compared to market expectations of between 6.3% and 6.4%.
A survey of eight leading economists by I-Net Bridge had forecast a current account deficit of 6.4% of GDP in the fourth quarter.
The deficit on the current account amounted to 6.3% of GDP last year compared with a deficit of 3.4% in 2011.
The South African Treasury on Tuesday allotted R500m of R213 bonds at a clearing yield of 7.990%‚ R800m of R209 bonds at a clearing yield of 8.280% and R800m of R214 bonds at a clearing yield of 8.330%.
It received bids worth R1.295bn‚ R2.69bn and R2.91bn respectively.
