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Johannesburg - South African bonds were a few points weaker in midday trade on Wednesday.
The National Treasury said it would auction R500m worth of R204 bonds, R500m worth of R207 bonds and R1.1bn worth of R213 bonds on January 31.
At 11:50, the benchmark R157 bond was trading at 6.650%, from its previous close of 6.640%. The R207 was bid at 7.840% and offered at 7.815% from a previous close of 7.805% and the R186 was trading at 8.340%, from its close of 8.300%.
The rand was bid at 7.9617 against the dollar from its previous close of 7.9496.
"We're tracking the rand, so that's one thing but it was also announced that the auction next week is going to be on longer dated stock, and that has seen the back-end of the curve steepen.
"With three bonds at next week's auction, it looks like they're trying to spread the store of issuance. What it does in effect for them is ensure a better take up of stock and also provides the market with variety - they can pick and choose whichever stock they want.
"It also limits the risk of a failed auction and also higher clearing levels for treasury. I'm not sure how they came to the decision - perhaps it was the market that demanded it," a trader said.
Foreigners were net buyers of R1.7bn of South African bonds including repo transactions on Tuesday after net sales of R1.249bn of local bonds on Monday, data released by the JSE show.
Nominal cumulative volume was R182.155bn on Tuesday from R73.063bn on Monday.
Foreigners were net buyers of R1.695bn of South African bonds excluding repo transactions on Tuesday after net sales of R1.252bn of local bonds on Monday.
For the year to date foreigners have been net buyers of R2.067bn 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 R1.261bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
The National Treasury said it would auction R500m worth of R204 bonds, R500m worth of R207 bonds and R1.1bn worth of R213 bonds on January 31.
At 11:50, the benchmark R157 bond was trading at 6.650%, from its previous close of 6.640%. The R207 was bid at 7.840% and offered at 7.815% from a previous close of 7.805% and the R186 was trading at 8.340%, from its close of 8.300%.
The rand was bid at 7.9617 against the dollar from its previous close of 7.9496.
"We're tracking the rand, so that's one thing but it was also announced that the auction next week is going to be on longer dated stock, and that has seen the back-end of the curve steepen.
"With three bonds at next week's auction, it looks like they're trying to spread the store of issuance. What it does in effect for them is ensure a better take up of stock and also provides the market with variety - they can pick and choose whichever stock they want.
"It also limits the risk of a failed auction and also higher clearing levels for treasury. I'm not sure how they came to the decision - perhaps it was the market that demanded it," a trader said.
Foreigners were net buyers of R1.7bn of South African bonds including repo transactions on Tuesday after net sales of R1.249bn of local bonds on Monday, data released by the JSE show.
Nominal cumulative volume was R182.155bn on Tuesday from R73.063bn on Monday.
Foreigners were net buyers of R1.695bn of South African bonds excluding repo transactions on Tuesday after net sales of R1.252bn of local bonds on Monday.
For the year to date foreigners have been net buyers of R2.067bn 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 R1.261bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.
