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Johannesburg - South African bonds were weaker in midday trade on Friday in line with the rand, as uncertainly over the eurozone crisis weighed on sentiment.
By 11:50, the benchmark R157 bond was trading at 6.760% from its previous close of 6.720%. The R207 was trading at 7.965% from a previous close of 7.900%. and the R186 was trading at 8.490% from its close of 8.430%.
The rand was bid at 8.2404 against the dollar from its previous close of 8.2202.
"It's still the same story - the uncertainty out of Europe and the rand still trading above 8.23/US$ has continued to put pressure on local bonds and it looks like the market didn't take too kindly to the fact that Mario Draghi is not continuing with the purchasing of bonds without subsequent sterilisation - it has put pressure on the rand as well as the euro.
"Locally it doesn't look like there's much coming through the market, so we're going to be very choppy for the rest of the year and because of the thin liquidity it's likely we'll see quite a bit of volatility," a trader said.
Foreigners were net buyers of R335.408m of South African bonds including repo transactions on Thursday after net purchases of R403.103m of local bonds on Wednesday, data released by the JSE show.
Nominal cumulative volume was R38.598bn on Thursday from R75.34 billion on Wednesday.
Foreigners were net buyers of R339.721m of South African bonds excluding repo transactions on Thursday after net purchases of R399.003m of local bonds on Wednesday.
For the year to date, foreigners have been net buyers of R47.243bn 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 R37.816bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:50, the benchmark R157 bond was trading at 6.760% from its previous close of 6.720%. The R207 was trading at 7.965% from a previous close of 7.900%. and the R186 was trading at 8.490% from its close of 8.430%.
The rand was bid at 8.2404 against the dollar from its previous close of 8.2202.
"It's still the same story - the uncertainty out of Europe and the rand still trading above 8.23/US$ has continued to put pressure on local bonds and it looks like the market didn't take too kindly to the fact that Mario Draghi is not continuing with the purchasing of bonds without subsequent sterilisation - it has put pressure on the rand as well as the euro.
"Locally it doesn't look like there's much coming through the market, so we're going to be very choppy for the rest of the year and because of the thin liquidity it's likely we'll see quite a bit of volatility," a trader said.
Foreigners were net buyers of R335.408m of South African bonds including repo transactions on Thursday after net purchases of R403.103m of local bonds on Wednesday, data released by the JSE show.
Nominal cumulative volume was R38.598bn on Thursday from R75.34 billion on Wednesday.
Foreigners were net buyers of R339.721m of South African bonds excluding repo transactions on Thursday after net purchases of R399.003m of local bonds on Wednesday.
For the year to date, foreigners have been net buyers of R47.243bn 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 R37.816bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
