It is the dollar day on Thursday as the US currency swells against major currencies, weakening the rand and pulling local bonds off their best level in late trade
SOUTH African bonds remained firm but were off their best levels in late afternoon trade on Thursday on the back of a weaker rand.
“The US jobless claims were better than expected, so that boosted the dollar and the rand slumped. Despite that our bonds are only off marginally in the afternoon,” a local trader said.
At 3.47pm, the benchmark R157 bond was trading at 5,81% from Wednesday’s close of 5,87%. The R207 was trading at 6,85% from a previous close of 6,9% and the R186 was trading at 7,67% from its previous close of 7,73%.
At the end of May the R157 closed at 6,39%, the R207 at 7,645% and the R186 at 8,375%.
The rand was bid at R8,3571 against the dollar from R8,3251 at noon, a best level of R8,1592 on Wednesday, its close on Wednesday of R8,2371 and Tuesday’s close of R8,2103.
The number of US workers filing applications for jobless benefits fell to the lowest level in more than four years, as some factories skipped typical summer shutdowns, according to Dow Jones Newswires reports.
Claims fell 26000 to 350000 last week, while economists expected a smaller drop to 370000.
The cost of goods imported into the US posted the largest decline in more than three years in June, reflecting the continued fall of oil prices. Import prices dropped 2,7% from May, while analysts forecast a two-percent decline.
Market researcher, RealtyTrac, showed foreclosures were down 11% for the first half of 2012, primarily due to a drop in bank repossession in the second quarter Foreclosures dropped tow percent from the prior six months.
Foreigners were net buyers of R885,923m of South African bonds including repo transactions on Wednesday after net purchases of R1,426bn of local bonds on Tuesday, data released by the JSE show.
Nominal cumulative volume was R63,494bn on Wednesday from R235,742bn on Tuesday.
Foreigners were net buyers of R1,476bn of South African bonds excluding repo transactions on Wednesday after net purchases of R1,2bn of local bonds on Tuesday.
For the year to date, foreigners were net buyers of R55,964bn of local bonds‚ excluding repo transactions. In 2011 they bought R47,359bn worth of local bonds‚ excluding repo transactions.
In the year to date, foreigners bought R53,272bn worth of local bonds, including repo transactions. In 2011 they purchased bonds worth R37,501bn.
