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Johannesburg - South African government bonds and the rand currency started the week on a firmer footing on Monday as dealers looked favourably to risky assets and also supported by a rebound in metals such as gold.
Reserves data released by the central bank at 08:00 showed South Africa's international liquidity position was up by $1.3bn at end April while the forward position fell by $147m.
The bank said the forward position, which reflects mainly the outstanding swap or spot transactions, was impacted by swaps which matured during April.
Stocks could open lower, with the JSE's blue chip Top-40 June futures contract down 0.5% before the 09:00 start of trade.
Government bonds were at near 4 month highs, boosted by foreign buyers taking advantage of the yield differential in the local market.
The yield on the 2015 note (ZAR157) was lower at 7.57% and that on the 2026 note (ZAR186) 2.5 basis points lower at 8.58%, levels last seen in January on Reuters data.
The rand has come off two week lows touched towards the end of last week to trade 0.26% firmer at R6.6870 against the dollar at 08:42. Friday's close was R6.7045 in New York.
"Improved sentiment following Friday's better-than-expected US payrolls number has followed through to the start of the week, with risk assets generally stronger in the Asia trading session today," RBC Capital Markets said in a note.
The commodity-linked rand took heart from commodities regaining some ground after falling last week.
Absa Captital's technical strategist Judy Padayachee said as the dollar has sold off against commodity currencies this morning, the rand is also on course to benefit and push below R6.70.
Reserves data released by the central bank at 08:00 showed South Africa's international liquidity position was up by $1.3bn at end April while the forward position fell by $147m.
The bank said the forward position, which reflects mainly the outstanding swap or spot transactions, was impacted by swaps which matured during April.
Stocks could open lower, with the JSE's blue chip Top-40 June futures contract down 0.5% before the 09:00 start of trade.
Government bonds were at near 4 month highs, boosted by foreign buyers taking advantage of the yield differential in the local market.
The yield on the 2015 note (ZAR157) was lower at 7.57% and that on the 2026 note (ZAR186) 2.5 basis points lower at 8.58%, levels last seen in January on Reuters data.
The rand has come off two week lows touched towards the end of last week to trade 0.26% firmer at R6.6870 against the dollar at 08:42. Friday's close was R6.7045 in New York.
"Improved sentiment following Friday's better-than-expected US payrolls number has followed through to the start of the week, with risk assets generally stronger in the Asia trading session today," RBC Capital Markets said in a note.
The commodity-linked rand took heart from commodities regaining some ground after falling last week.
Absa Captital's technical strategist Judy Padayachee said as the dollar has sold off against commodity currencies this morning, the rand is also on course to benefit and push below R6.70.
