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Johannesburg - South African government bonds edged higher and the rand held earlier gains against the dollar on Tuesday, after Reserve Bank data showed the current account deficit narrowed sharply in the fourth quarter of 2010.
The yield on the 2015 bond R157 fell to 7.835% from 7.895% before the data release.
The rand was little changed at R6.9020/$ from R6.9016/$, up 0.66% on the day.
South Africa's current account gap narrowed to a seven-year-low of 0.6% of gross domestic product (GPD) in the fourth quarter of 2010 while expenditure slowed, partly due to a moderation in household spending, the Reserve Bank said.
"Obviously the rand strengthened a little bit on the good news on the current account deficit and that is all we have seen," a trader in Johannesburg said, adding that dealers were also taking speculative positions ahead of a weekly debt auction on Tuesday.
"I think someone is testing it (the yield) to see how low they can get it before we have the auction," he said.
The Treasury is offering R1.3bn of the 2020 government bond R207 and R800m of the 2036 R209 note at the auction.
The yield on the 2015 bond R157 fell to 7.835% from 7.895% before the data release.
The rand was little changed at R6.9020/$ from R6.9016/$, up 0.66% on the day.
South Africa's current account gap narrowed to a seven-year-low of 0.6% of gross domestic product (GPD) in the fourth quarter of 2010 while expenditure slowed, partly due to a moderation in household spending, the Reserve Bank said.
"Obviously the rand strengthened a little bit on the good news on the current account deficit and that is all we have seen," a trader in Johannesburg said, adding that dealers were also taking speculative positions ahead of a weekly debt auction on Tuesday.
"I think someone is testing it (the yield) to see how low they can get it before we have the auction," he said.
The Treasury is offering R1.3bn of the 2020 government bond R207 and R800m of the 2036 R209 note at the auction.
