SHORTER-dated bonds were all the rage yesterday as the rand surged ahead and news broke of a possible further reduction in the repo rate sooner than April.
By 3.30pm the R153 bond was at 6,560% from 6,795%. The R157 was at 7,560% from 7,600%, while the R186 was bid at 8,110% from 8,125%. “The short end is stronger on the back of the currency appreciation and news of a possible special meeting on rates," a dealer said. A bond market analyst said greater bond issuance was expected when the budget was delivered tomorrow and this was keeping longer areas of the curve subdued.
However, even the medium-term R157 could not resist strengthening just a tad on the stronger rand. Foreigners were net bond sellers of R1,611bn on Friday after net bond sales of R199m on Thursday, Bond Exchange of SA statistics show. I-Net Bridge
