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Johannesburg - A weaker rand coupled with a
poorly-bid weekly auction saw South African bonds on the back foot in
midday trade on Tuesday.
By 11:50, the benchmark R157 bond was trading at 6.710% from its previous close of 6.610%. The R207 was bid at 8.075% and offered at 8.095% from a previous close of 7.950% and the R186 was bid at 8.350% and offered at 8.435% from its close of 8.270%.
The rand was bid at 7.9851 against the dollar from its previous close of 7.8308.
"Bonds were initially weaker on the rand but the auction was rather poor, so bonds have weakened further," a local bond trader said.
"I also suspect that the appetite for the longer end is being exceeded by supply. So the risk probably is for higher yields," he added.
At Tuesday's weekly bond auction, the National Treasury received bids totalling R1.8bn for R1.1bn worth of R208 bonds and bids totalling R1.805bn for R1bn worth of R213 bonds.
Foreigners were net buyers of R515.567m of South African bonds including repo transactions on Monday after net purchases of R1.525bn of local bonds on Friday, data released by the JSE shows.
Nominal cumulative volume was R19.803bn on Monday from R20.783bn on Friday.
Foreigners were net buyers of R510.841m of South African bonds excluding repo transactions on Monday after net purchases of R1.525bn of local bonds on Friday.
For the year to date, foreigners have been net buyers of R37.357bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R28.991bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:50, the benchmark R157 bond was trading at 6.710% from its previous close of 6.610%. The R207 was bid at 8.075% and offered at 8.095% from a previous close of 7.950% and the R186 was bid at 8.350% and offered at 8.435% from its close of 8.270%.
The rand was bid at 7.9851 against the dollar from its previous close of 7.8308.
"Bonds were initially weaker on the rand but the auction was rather poor, so bonds have weakened further," a local bond trader said.
"I also suspect that the appetite for the longer end is being exceeded by supply. So the risk probably is for higher yields," he added.
At Tuesday's weekly bond auction, the National Treasury received bids totalling R1.8bn for R1.1bn worth of R208 bonds and bids totalling R1.805bn for R1bn worth of R213 bonds.
Foreigners were net buyers of R515.567m of South African bonds including repo transactions on Monday after net purchases of R1.525bn of local bonds on Friday, data released by the JSE shows.
Nominal cumulative volume was R19.803bn on Monday from R20.783bn on Friday.
Foreigners were net buyers of R510.841m of South African bonds excluding repo transactions on Monday after net purchases of R1.525bn of local bonds on Friday.
For the year to date, foreigners have been net buyers of R37.357bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R28.991bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
