Money SA economy
South African bonds moved onto the front during the morning session on Tuesday after a competitively bid auction. The market was flat prior to the auction as it languished in overbought territory.
By 11.44am the benchmark R157 bond was at 7.170% from 7.180% at its close on Monday, while the R207 was bid at an unchanged 7.830% at its previous close. The R186 was at 7.825% after closing at 7.850%.
The South African Treasury on Tuesday allotted R1.1 billion worth of R208 bonds at a clearing yield of 7.810% and one billion rand worth of R213 bonds at a clearing yield of 7.860%. The total amount of bids Received were R2.640 billion and 2.755 respectively, indicating reasonable demand.
A dealer and an analyst confirmed that the auction was the key underpin for the market this morning as the strong rand was not filtering through due to overbought conditions.
The dealer said limited positions were being taken due to the overbought market.
Foreigners were net sellers of R354.955 million of South African bonds including repo transactions on Monday after net purchases of R3.464 billion of local bonds on Friday, Bond Exchange of South Africa statistics show.
