Fin24

Bonds steepen after switch auction

2012-11-15 12:47

Johannesburg - The South African bond curve steepened in quiet midday trade on Thursday after the switch auction‚ which saw the national treasury switch R1bn of R209 into R186 bonds after it received bids worth R1.89bn.

“The curve is steepening as we have more R186 bonds available‚ while the short end is well anchored‚” a local bond trader said.

At 11:55‚ the benchmark R186 was trading at 7.745% from Wednesday’s close of 7.695%. The R157 was trading at 5.470% from its previous close of 5.465%. The R207 was trading at 6.510% from its previous close of 6.495%.

The rand was bid at R8.9238 from Wednesday’s close of R8.9020 and Tuesday’s close of R8.7848.