Fin24

Bonds stronger on rand‚ US treasuries

2012-11-09 13:07

Johannesburg - The South African bond market was trading firmer at noon on Friday on the back of positive sentiment triggered by a stronger rand and firmer US treasuries.

At 11.41 the benchmark R186 was trading at 7.580% from Thursday’s close of 7.625%. The R157 was trading at 5.445% from its previous close of 5.460% and the R207 was bid at 6.435% and offered at 6.405%‚ from its previous close of 6.440%.

At 11.47 the rand was bid at R8.7010/$ from Thursday’s close of R8.7034.

“The market has been thin‚ but the rand has come back from R8.75 overnight to R8.70 and the US bond market is looking good‚ which are both supporting our local bonds‚” said Ashley Dickinson‚ bonds trader at Renaissance Capital.

“The bond auction today has been reasonable with demand mostly in the I2038 area‚” he added.

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