Johannesburg - South African bonds were softer in
midday trade on Monday on the back of a weaker rand and a disappointing
Transnet bond auction.
At 11:45, the benchmark R157 bond was trading at 6.645% from
its previous close of 6.650%. The R207 was bid at 7.805% and offered at
7.775% from a previous close of 7.770%, and the R186 was bid at 8.300%
and offered at 8.270% from its close of 8.265%.
The rand was bid at 7.6309 against the dollar from its previous close of 7.5889.
A local bond trader said: "We are a bit softer on the rand, but the Transnet auction is a
warning sign to the bond bulls out there. To attract only R92m
with R250m on offer, tells you the market is tired and waiting
for something to give it fresh impetus.
"In my view that would require
the rand to go below R7 per dollar, but that does not look like
happening any time soon."
Foreigners were net buyers of R652.909m of South
African bonds including repo transactions on Friday after net purchases
of R683.936m of local bonds on Thursday, data released by the JSE
Nominal cumulative volume was R89.364bn on Friday from R62.370bn on Thursday.
Foreigners were net buyers of R652.611m of South
African bonds excluding repo transactions on Friday after net purchases
of R682.316m of local bonds on Thursday.
For the year to date foreigners have been net buyers of
R13.519bn of local bonds, excluding repo transactions. In 2011
they were net buyers of R47.359bn worth of local bonds, excluding
In the year to date foreigners have been net buyers of R12.140bn of local bonds including repo transactions. In 2011 they bought
R37.501bn of local bonds.