Fin24

Bonds flat ahead of bond auction

2012-11-09 11:14

Johannesburg - The South African bond market was flat in early trade on Friday‚ ahead of the bond auction later in the day.

At 09:11 the benchmark R186 was bid at 7.625% and offered at 7.600% from Thursday’s close of 7.625%. The R157 was bid at 5.460% and offered at 5.450% from its previous close of 5.460%‚ and the R207 was bid at 6.445% and offered at 6.425%‚ from its previous close of 6.440%.

The rand was bid at R8.6918/$ from Thursday’s close of R8.7034.

The National Treasury will auction a total of R800m nominal inflation-linked bonds spread between R212s‚ I2038s and I2050s on Friday.

“Demand for I2050s is again expected to dominate interest in the weekly auction as the ultra long end of the real bond curve remains very steep‚ with the R202/I2050 spread at +20 basis points.

"The other stocks are expected to see relatively less demand judging from secondary market interest‚ though bids are‚ nonetheless‚ expected in these bonds‚” RMB analysts said in a note.