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Bonds stay firm on rand

Feb 15 2012 12:49 I-Net Bridge

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Johannesburg - South African bonds displayed a firmer bias in midday trade on Wednesday, on the back of the rand.

At 11:50, the benchmark R157 bond was trading at 6.580%, from its previous close of 6.600%. The R207 was bid at 7.710% and offered at 7.680% from a previous close of 7.745% and the R186 was trading at 8.260% and offered at 8.230% from its close of 8.270%.

The rand was bid at 7.6869 against the dollar from its previous close of 7.7157.

"We opened a bit stronger on the currency. There's a lot of action on the curve, every point up to 208 is quite well-bid.

"Generally, there's not much going on at the moment - guys are on a run, small risk ahead of Budget next week and we can have a relook," a trader said.

On the local front, today sees the release of December's retail sales data at 13:00 from Stats SA.

Foreigners were net buyers of R1.130bn of South African bonds including repo transactions on Tuesday after net purchases of R1.046bn of local bonds on Monday, data released by the JSE shows.

Nominal cumulative volume was R214.444bn on Tuesday from R56.958bn on Monday.

Foreigners were net buyers of R1.881bn of South African bonds excluding repo transactions on Tuesday after net purchases of R1.045bn of local bonds on Monday.

For the year to date foreigners have been net buyers of R11.829bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.

In the year to date foreigners have been net buyers of R10.255 billion of local bonds including repo transactions. In 2011 they bought R37.501 billion of local bonds.

 
 
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