Publications
Partners
Johannesburg - The bond market was softer in quiet midday
trade on Tuesday on a weaker rand‚ despite a well-bid auction.
The National Treasury allotted R500m worth of R186 bonds at
a clearing yield of 7.595%‚ R800m worth of R209 bonds at a clearing yield of
8.430% and R800m worth of R2048 bonds at a clearing yield of 8.680%. The bids
received were R2.825bn‚ R1.715bn and R1.745bn respectively.
“We had a good auction‚ but the weaker rand outweighed that
positive‚” a local bond dealer said.
At 11.45am the benchmark R157 bond was trading at 5.385%
from Monday’s close of 5.385% and 5.380% at Friday’s close. The R207 was bid at
6.435% and offered at 6.415% from its previous close of 6.425%‚ and the R186
was trading at 7.630% from its previous close of 7.565%.
The rand was bid at R8.7344 to the dollar from Monday’s
close of R8.6350 and Friday’s close of R8.6616.
SA's composite leading business economic indicator rose for
the first time after eight declines on a year on year basis by 0.1 % year on
year (y/y) in August‚ after a revised 1.8% (2.3%) y/y decline in July‚ data
released on Tuesday by the South African Reserve Bank (Sarb) showed.
The country's seasonally adjusted leading economic indicator
provides a guideline for economic growth for at least six months ahead.
The Reserve Bank said the composite leading business cycle
indicator also increased by 0.1% in August compared with the preceding month.
Five of the 11 component time series that were available for August increased‚ while six decreased‚ the Reserve Bank reported.
