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Bonds unmoved by GDP data

Johannesburg - South African bonds were unmoved by the first quarter gross domestic product (GDP) release at 11:30 in midday trade on Tuesday.

GDP growth came in at 2.7% quarter on quarter (q/q) seasonally adjusted annualised (saa) in the first quarter of 2012, from 3.2% in the fourth quarter of 2011. The consensus forecast according to a poll of leading economists by I-Net Bridge was 2.3%.

The range of forecasts among twelve economists for the current survey ranged from 1.8% to 3.9%.

"The GDP release had no effect on the bond market and we are where we were this morning," a local trader said.

At noon, the benchmark R157 bond was trading at 6.375% from Monday's close of 6.355%. The R207 was bid at 7.590% and offered at 7.570% from a previous close of 7.565% and the R186 was trading at 8.325% from its close of 8.315%.

The rand was bid at 8.3463 against the dollar from Monday's close of R8.3375.

Meganomics economist Colen Garrow said the result was better than expected with some nice surprises in manufacturing and retail.

"The production side has so far not benefited from the weaker rand, but slower growth in our export destination countries could cut the benefit of this. Overall I would rate the result respectable, but not sustainable, given the headwinds from overseas."

Foreigners were net buyers of R467.987m of South African bonds including repo transactions on Monday after net sales of R1.643bn of local bonds on Friday, data released by the JSE shows.

Nominal cumulative volume was R56.988bn on Monday from R55.308bn on Friday.

Foreigners were net buyers of R467.931m of South African bonds excluding repo transactions on Monday after net sellers of R1.643bn of local bonds on Friday.

For the year to date foreigners have been net buyers of R36.972bn 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 R33.040bn of local bonds including repo transactions. In 2011 they bought R37.501bn worth of local bonds.
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