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Johannesburg - The rand fell against the dollar on Tuesday as renewed concerns over Ukraine put pressure on emerging markets, while a long-weekend break saw subdued interest in a weekly debt auction, pushing yields higher.
The currency was also tracking the euro, under some pressure as investors believed the European Central Bank would try to limit further strength in the currency.
The rand eased to R10.5445/$ by 15:09 GMT, coming back from the session low of R10.5720/$, its weakest level in nearly a week.
The R10.5845/$ low hit last week is the short-term support area for the rand, a break of which would open up early April lows.
Yields on government debt climbed to their highest since April 4, after weaker-than-expected demand for bonds on auction earlier in the session.
Government sold R2.35bn in 2023, 2037 and 2048 bonds, where cover ratios for the longer-dated paper were well below their previous levels, and the bonds cleared at higher levels.
"Local bonds have weakened post-auction after an underwhelming level of bidder participation," Tradition Analytics said in a market note.
The benchmark 2026 yield rose 13 basis points to 8.505%, while the 2015 note climbed 10 basis points to 6.815%.
Tradition Analytics added that Tuesday's auction saw the second lowest total of nominal bids for the year, which was likely because of the Easter holiday break.
The Treasury will announce next week's issuance plans at 09:00 GMT on Wednesday.
The currency was also tracking the euro, under some pressure as investors believed the European Central Bank would try to limit further strength in the currency.
The rand eased to R10.5445/$ by 15:09 GMT, coming back from the session low of R10.5720/$, its weakest level in nearly a week.
The R10.5845/$ low hit last week is the short-term support area for the rand, a break of which would open up early April lows.
Yields on government debt climbed to their highest since April 4, after weaker-than-expected demand for bonds on auction earlier in the session.
Government sold R2.35bn in 2023, 2037 and 2048 bonds, where cover ratios for the longer-dated paper were well below their previous levels, and the bonds cleared at higher levels.
"Local bonds have weakened post-auction after an underwhelming level of bidder participation," Tradition Analytics said in a market note.
The benchmark 2026 yield rose 13 basis points to 8.505%, while the 2015 note climbed 10 basis points to 6.815%.
Tradition Analytics added that Tuesday's auction saw the second lowest total of nominal bids for the year, which was likely because of the Easter holiday break.
The Treasury will announce next week's issuance plans at 09:00 GMT on Wednesday.
