Rand firmer, bonds slightly softer

The rand was firmer against the dollar on Friday in thin trade as it tracked the euro.

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The rand was firmer against the dollar on Friday in thin trade ahead of the Christmas holiday as it tracked a euro that was trading in a range against the greenback.

South African bonds displayed a slightly softer sheen in light volume trade. As expected the session was subdued, with many players away for the holidays. A trader noted that the rand had been the major driver throughout the week.

Local markets closed at midday ahead of the Christmas weekend.

They will reopen on Wednesday December 28, as December 27 is a public holiday in SA.

By 12:00, the benchmark R157 bond was trading at 6.750% unchanged from its previous close. The R207 was bid at 7.930% and offered at 7.900% from a previous close of 7.920% and the R186 was bid at 8.520% and offered at 8.490% from its close of 8.510%.

Foreigners were net sellers of R371.059 million of South African bonds including repo transactions on Thursday after net sales of R232.917 million of local bonds on Wednesday, data released by the JSE shows.

Nominal cumulative volume was R24.315 billion on Thursday from R27.041 billion on Wednesday.

Foreigners were net sellers of R369.983 million of South African bonds excluding repo transactions on Thursday after net sales of R225.358 million of local bonds on Wednesday.

For the year to date, foreigners have been net buyers of R45.522 billion worth of local bonds, excluding repo transactions.

In 2010 foreigners bought net R57.064 billion rand worth of local bonds, excluding repo transactions.

For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R35.646 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.

At 012:01 local time, the rand was bid at R8.1698 to the dollar from its previous close of R8.1828. It was bid at R10.6750 to the euro from R10.6784 before, and at R12.7911 against sterling from R12.8219 previously.

The euro was bid at US$1.3066 from its previous close of US$1.3054.

Meanwhile Dow Jones Newswires reported that in foreign exchange markets, the euro traded in a range against the dollar, with investors hesitant to make bets on the single-currency before year-end, amid continued uncertainty over the outlook for the euro zone.

BONDS:

12:00 local time Range so far Previous

(09:00 GMT) Close

R157 (2016) 6.750% 6.450% - 6.760% 6.750%

R207 (2020) 7.930% bid 7.915% - 7.935% 7.920%

R186 (2026) 8.520% bid 8.505% - 8.525% 8.510%

Bond Exchange of South Africa (in billions of rand)

- I-Net Bridge

Source: http://www.iol.co.za/rand-firmer-bonds-slightly-softer-1.1204046

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