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Bonds track weaker rand

Jan 30 2012 13:28 I-Net Bridge

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Johannesburg - South African bonds were slightly weaker in midday play on Monday, tracking the rand in quiet trade.

At 11:50, the benchmark R157 bond was trading at 6.450%, from its previous close of 6.440%. The R207 was bid at 7.670% and offered at 7.645% from a previous close of 7.635% and the R186 was trading at 8.150%, from its close of 8.130%.

The rand was bid at 7.8295 against the dollar from its previous close of 7.7434.

"We've drifted a bit higher on the currency - it's very quiet though. Guys might try to push the market a bit, ahead of Tuesday's auction - on the whole though, it looks like players are sitting on the side-lines, there's some nervousness over Greece again," a trader said.

EU finance ministers are meeting today, where the details of the Greek debt restructuring will be discussed, so as to determine whether or not to grant the debt-laden nation further financial assistance, which would in turn be used by Greece to repay next month's €14.5bn worth of maturing debt, Absa Capital said.

"If consensus on these restructuring and financial bailout issues is reached then there is expected to be some extended euro short covering, which in turn would be supportive of a fresh wave of rand strength," it added.

With no local data due today, markets will eye their international counterparts for direction.

Tuesday sees a slew of economic data scheduled for release.

The SA Reserve Bank will announce the latest M3 and PSCE data at 08:00 tomorrow and SA's Customs and Excise Department is set to release the latest foreign trade data at 14:00.

Foreigners were net buyers of R1.123bn of South African bonds including repo transactions on Friday after net purchases of R3.403bn worth of local bonds on Thursday, data released by the JSE shows.

Nominal cumulative volume was R58.870bn on Friday from R70.779bn on Thursday.

Foreigners were net buyers of R1.123bn of South African bonds excluding repo transactions on Friday after net purchases of R3.433bn of local bonds excluding repo transactions on Thursday.

For the year to date foreigners have been net buyers of R6.188bn 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 R5.350bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.

 
 
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It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Sasha

"In the short term this is true, Greece will dominate the headlines on a day to day basis, until their next elections when there would be some clarity to answer the question, "What next for Greece?" Amazingly everyone except the politicians seem to be lining themselves up for worst case scenario, b... Read their blog...

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