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Johannesburg - South African bonds were weak in midday trade on Tuesday despite a weaker than expected gross domestic product (GDP) figure released at 11:30.
The rand lost 5c against the US dollar immediately after the release of the GDP data to an intra-day worst level of R9.7457.
The 2013 first quarter GDP growth figure came in at 0.9% quarter on quarter seasonally adjusted and annualised compared with the I-Net Bridge consensus forecast of 1.9% from 2.1% in the fourth quarter of 2012. The range of forecasts was from 1.4% to 2.7%.
“The figure was a real shocker‚ but bonds came back from their worst level as it puts a rate cut firmly back on the table. We could in fact follow the Bank of Israel’s example and have a cut in between scheduled meetings as all members of the monetary policy committee after all work in same black building‚” a local bond trader said.
At 11:50 the benchmark R186 was trading at 7.160% from 7.055% at Monday’s close and 7.040% at Friday’s close.
The R157 was trading at 5.255% from 5.220% at its previous close‚ and the R207 was bid at 6.245% and offered at 6.215% from 6.140% at its previous close.
The rand was bid at R9.7116/$ from Monday’s close of R9.6099 and Friday’s close of R9.5697.
The National Treasury at 11am allotted R550m of R2023 bonds at a clearing yield of 6.690%‚ R900m of R186 bonds at a clearing yield of 7.140% and R900m of R213 bonds at a clearing yield of 7.800%. Bids received were R1.205bn‚ R2.505bn and R2.905bn respectively.
