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Johannesburg - South African bonds were
marginally weaker in noon trade on Tuesday, which traders attributed to a
softer rand and what was viewed a disappointing weekly government
bond auction.
At 11:30, the benchmark R157 bond was bid at 6.615% and offered at 6.595%, from its previous close of 6.580%. The R207 was bid at 7.730% and offered at 7.700% from a previous close of 7.690% and the R186 was bid at 8.250% and offered at 8.220% from its close of 8.200%.
The rand was bid at 7.7014 against the dollar from its previous close of 7.6805.
"The auction was weaker than anticipated and the currency is also weaker, which have resulted in bonds losing a few basis points," a local bond trader said.
At its weekly auction on Tuesday morning, the National Treasury received bids totaling R1.46bn for R700m worth of R204 bonds, bids totaling R1.14bn for R700m worth of R208 bonds and bids totaling R1.105bn for R700m worth of R214 bonds.
Absa Capital analysts said in a morning report that this year, non-residents had been particularly fond of R208 scrip, with R7.4bn worth of net purchases which had contributed to the proportionately greater compression of yields at the belly of the yield curve."
They had expected today's auction to be no different in "an environment where risk is being added to portfolios and SA scrip is still offering a relatively attractive pickup".
Foreigners were net sellers of R1.974bn of South African bonds including repo transactions on Monday after net sales of R681.923m of local bonds on Friday, data released by the JSE show.
Nominal cumulative volume was R57.525bn on Monday from R45.379bn on Friday.
Foreigners were net sellers of R1.975bn of South African bonds excluding repo transactions on Monday after net sales of R673.836m of local bonds on Friday.
For the year to date foreigners have been net buyers of R9.098bn 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 R7.541bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
At 11:30, the benchmark R157 bond was bid at 6.615% and offered at 6.595%, from its previous close of 6.580%. The R207 was bid at 7.730% and offered at 7.700% from a previous close of 7.690% and the R186 was bid at 8.250% and offered at 8.220% from its close of 8.200%.
The rand was bid at 7.7014 against the dollar from its previous close of 7.6805.
"The auction was weaker than anticipated and the currency is also weaker, which have resulted in bonds losing a few basis points," a local bond trader said.
At its weekly auction on Tuesday morning, the National Treasury received bids totaling R1.46bn for R700m worth of R204 bonds, bids totaling R1.14bn for R700m worth of R208 bonds and bids totaling R1.105bn for R700m worth of R214 bonds.
Absa Capital analysts said in a morning report that this year, non-residents had been particularly fond of R208 scrip, with R7.4bn worth of net purchases which had contributed to the proportionately greater compression of yields at the belly of the yield curve."
They had expected today's auction to be no different in "an environment where risk is being added to portfolios and SA scrip is still offering a relatively attractive pickup".
Foreigners were net sellers of R1.974bn of South African bonds including repo transactions on Monday after net sales of R681.923m of local bonds on Friday, data released by the JSE show.
Nominal cumulative volume was R57.525bn on Monday from R45.379bn on Friday.
Foreigners were net sellers of R1.975bn of South African bonds excluding repo transactions on Monday after net sales of R673.836m of local bonds on Friday.
For the year to date foreigners have been net buyers of R9.098bn 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 R7.541bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
