Johannesburg – The South African bond market was softer in midday trade on Tuesday on a weaker rand‚ despite a well bid auction at 11:00.
The National Treasury on Tuesday allotted R500m worth of R2023 bonds at a clearing yield of 6.630%‚ R1.1bn worth of R214 bonds at a clearing yield of 7.970% and R500m worth of R186 bonds at a clearing yield of 7.080%.
Bid received totaled R1.605bn‚ R2.165bn and R1.685 billion respectively.
“We had a good auction‚ but the weaker rand is weighing on the bond market‚” a local bond dealer said.
At 11.55am the benchmark R186 was trading at 7.110% from Monday’s close of 7.095% and Friday’s close of 7.150%. The R157 was trading at 5.300% from 5.305% at its previous close and the R207 was bid at 6.220% and offered at 6.190% from its previous close of 6.175%.
The rand was last bid at R8.7553/$ from R8.7008/$ at Monday’s close.
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