Bonds subdued in quiet trade

Johannesburg - South African bonds were weaker in midday trade on Friday with the market ignoring the positive sentiment in global markets.

Dealers said they expected trade to remain uneventful until the US released non-farm payroll data later today.

By 12:14 the short-term government R154 bond was bid at 7.060% and offered at 7.040% after closing at 7.040% on Thursday and the medium-term R157 was at 8.175% from 8.155% at its previous close. The long-term R186 was bid at 9.005% and offered at 8.975% from 8.940% previously.

The rand was bid at 7.4696 to the dollar from 7.4755 at its previous close.

"The rand is playing a role," said a local trader.

"Things are seen as remaining quiet for the most part ahead of supply coming into the market next week," he added.

Bonds were not moved by reserve data released by the South African Reserve Bank (Sarb) on Friday morning.

The SARB's holdings of gold and foreign assets totalled R303.949bn at the end of February from 298.017 at the end of January.

Foreigners were net buyers of R737.843m of South African bonds including repo transactions on Thursday, after net purchases of R2.965bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.

Nominal cumulative volume was R23.263bn on Thursday from R41.102bn on Wednesday.

Foreigners were net buyers of R737.381md of South African bonds excluding repo transactions on Thursday, after net purchases of R3.021bn of local bonds on Wednesday.

In the year to date foreigners have been net buyers of R8.673bn worth of local bonds, excluding repo transactions.

So far for total transactions, including repo transactions, foreigners have been net buyers of R11.714bn worth of bonds.

In 2009 foreigners were net buyers of R27.346bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.

- I-Net Bridge