South African bonds were steady, but off their best levels of the day by noon as renewed vigour on the equity market saw to some dis-investing out of bonds.
A feature of the past few weeks has been a shift to the safer climes of the bond market out of equities, but coordinated global rescue plans are rubbing off on equities this week.
By 11:41 the short-term government R153 bond was at 9.210% from its previous close of 9.230%. The medium-term R157 was at 9.020% from 9.010% at Monday’s close and the long-term R186 was bid at 8.750%, unchanged from its previous close.
The rand was last at 9.0120 per dollar from a previous 9.0632.
A local bond trader said while a rand break below the psychologically important 9/dlr mark should help bonds, the key feature now was a movement out of bonds and back into equities.
Dow Jones Newswires reports the dollar is up against the yen but down against most other majors in Europe on Tuesday, as equities rally and risk aversion falls to its lowest level in a week.
Foreigners were net buyers of 293.806 million rand worth of South African bonds on Monday after net sales of 1.997 billion rand worth of local bonds on Friday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was 28.967 billion rand on Monday from 44.075 billion rand on Friday. |
