Johannesburg - Bonds were up to four basis points firmer by midday on Friday, helped by the firmer rand, which seems to be eyeing the key R7.20 per dollar level on the downside. News that the World Bank had granted Eskom a $3.75bn loan was also supportive.
By 11:45 the short-term government R154 bond was bid at 6.720% and offered at 6.835% from 6.740% at its previous close and the medium-term R157 was at 7.930% from 7.970% at its previous close. The long-term R186 was bid at 8.795% and offered at 8.765% from 8.810% previously.
The rand was bid at R7.2211 to the dollar from R7.2512 at its previous close.
A local trader said that apart from watching the firm rand, which is hovering around the R7.20 level against the dollar, there were a number of issues coming into the market today.
Firstrand is issuing up to R2bn across the range of its bonds, the Treasury auctioned R600m in inflation linked bonds, and there was also the weekly Treasury Bill auction.
At the weekly Reserve Bank auction, the Bank allotted R3.825bn of 3-month Treasury Bills at an average discount rate of 6.59%, the same rate as the week before.
The Bank allotted R1.075bn worth of 6-month Treasury Bills at an average discount rate of 6.53% from 6.57% the week before, and R875m worth of 9-month Treasury Bills at an average discount rate of 6.61% from 6.65% the week before. The Bank allotted R475m worth of 12-month Treasury Bills at a rate of 6.55% from 6.62%.
Foreigners were net buyers of R1.663bn of bonds including repo transactions on Thursday, after net purchases of R399.728m of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R32.779bn on Thursday from R42.602bn on Wednesday.
Foreigners were net buyers of R356.679m of bonds excluding repo transactions on Thursday, after net purchases of R153.975m of local bonds on Wednesday.
In the year to date foreigners have been net buyers of R21.546bn worth of local bonds, excluding repo transactions.
So far for total transactions, including repo transactions, foreigners have been net buyers of R17.285bn worth of bonds.
In 2009 foreigners were net buyers of R27.346bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.
