South African bonds were a few points weaker in late trade on Wednesday, on the back of the softer local currency. A local trader said the National Treasury's auction announcement had also caused a bit of "strain".
Earlier, the National Treasury announced that it would auction 600 million rand worth of R186 bonds and 1.5 billion rand worth of R209 bonds on June 14.
By 15:50, the benchmark R157 bond was trading at 7.410% from its previous close of 7.370%. The R207 was bid at 8.180% and offered at 8.150% from 8.125% and the R186 was trading at 8.360% and offered at 8.385% from 8.355%.
The rand was bid at 6.7409 against the dollar from 6.7041 late on Tuesday.
Earlier, another trader said the auction announcement was causing a bit of a problem.
"The guys are pumping that ultra-long end flat out and hence the curve is a bit weaker," he said.
Foreigners were net sellers of 409.179 million rand of South African bonds including repo transactions on Tuesday after net purchases of 658.503 million rand of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was 191.176 billion rand on Tuesday from 57.187 billion rand on Monday.
Foreigners were net buyers of 1.519 billion rand of South African bonds excluding repo transactions on Tuesday after net purchases of 648.198 million rand of local bonds on Monday.
For the year to date, foreigners have been net buyers of 25.215 billion rand worth of local bonds, excluding repo transactions. In 2010 foreigners bought net 57.064 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 16.076 billion rand of local bonds. In 2010 they bought net 44.541 billion rand worth of bonds.
