Money SA economy
South African bonds were marginally weaker in noon trade on Monday amid a weaker rand but the market is expecting to see a pick-up in foreign buying interest this afternoon which should see bonds strengthening despite the weaker currency.
Strong foreign buying dominated trade last week, with foreigners accounting for net purchases of R8.8 billion of local bonds.
Foreigners have been net buyers of local bonds including repo transactions to the tune of R11.95 billion since the beginning of this month.
"The fact that bonds haven't really followed the rand much weaker means that there are still signs of foreign buyers out there. We're likely to see a pick-up in foreign buying activity this afternoon," a local bond trader said.
By 12.20pm the short-term government R154 bond was bid at 6.560% and offered at 6.540% after closing at 6.530% on Friday, and the medium-term R157 was at 7.800% from 7.775% at its previous close. The long-term R186 was bid at 8.760% and offered at 8.745% from 8.750% previously.
