Johannesburg - South African bonds were a bit firmer in midday play on Monday, in line with the rand.
At 11:50, the benchmark R157 bond was trading at 6.365%, from
Friday's close of 6.375%. The R207 was bid at 7.570% and offered at
7.550% from a previous close of 7.560% and the R186 was trading at
8.275% from its close of 8.285%.
The rand was bid at 8.3018 against the dollar from Friday's close of 8.3197.
"It is very, very quiet - we're just tracking the rand here," a local trader said.
Attention turns towards consumer inflation (CPI) data and a
statement from the South African Reserve Bank's (Sarb) Monetary Policy
Committee (MPC) due later this week.
The repo rate is expected to remain unchanged when the
Monetary Policy Committee (MPC) makes its rates announcement on
Thursday, May 24, according to a survey of ten leading economists by
I-Net Bridge.
Of the ten economists surveyed, none foresaw a rate cut on the
cards. The interest rate was cut by 50 basis points to 5.5% in November
2010.
This was the lowest reading in almost 30 years and resulted in a real interest rate of about 1%.
The South African Reserve Bank (Sarb) left the rate unchanged
at every MPC meeting in 2011, as well as in January and March this year.
Inflation, which the Sarb monitors closely in its rates decisions, was 6% year on year (y/y) in March.
Foreigners were net buyers of R685.119m of South
African bonds including repo transactions on Friday after net purchases
of R1.609bn of local bonds on Thursday, data released by the JSE
shows.
Nominal cumulative volume was R55.158bn on Friday from R57.358bn on Thursday.
Foreigners were net buyers of R683.462m of South
African bonds excluding repo transactions on Friday after net purchases
of R1.609bn of local bonds on Thursday.
For the year to date foreigners have been net buyers of
R38.517bn of local bonds, excluding repo transactions. In 2011
they were net buyers of R47.359bn worth of local bonds, excluding
repo transactions.
In the year to date foreigners have been net buyers of R34.545bn of local bonds including repo transactions. In 2011 they bought
R37.501bn of local bonds.
