The South African bond market was positive on Monday morning‚ taking its lead from the recovery in the rand.
The strong take-up of government’s $1.25bn 10-year government bond issue has also boosted market sentiment.
NKC Research analysts said the successful bond issue came as a surprise to some given “SA’s extreme economic and political difficulties in recent months”.
The bond transaction was more than two times oversubscribed and the issuance forms part of SA’s 2016-17 financing programme. Government’s borrowing requirement over the medium term amounts to $5.5bn‚ which includes $1bn carried over from 2015-16.
At 9.03am‚ the benchmark R186 bond was bid at 9.170% and offered at 9.160% from Friday’s close of 9.180%.
The middle-dated R207 was bid at 8.595% and offered at 8.590% from a previous close of 8.605%.
The rand was at R14.9205/$ from R14.9917/$ on Friday.
SA bonds positive as it follows rand’s lead
The South African bond market was positive on Monday morning‚ taking its lead from the recovery in the rand.
The strong take-up of government’s $1.25bn 10-year government bond issue has also boosted market sentiment.
NKC Research analysts said the successful bond issue came as a surprise to some given “SA’s extreme economic and political difficulties in recent months”.
The bond transaction was more than two times oversubscribed and the issuance forms part of SA’s 2016-17 financing programme. Government’s borrowing requirement over the medium term amounts to $5.5bn‚ which includes $1bn carried over from 2015-16.
At 9.03am‚ the benchmark R186 bond was bid at 9.170% and offered at 9.160% from Friday’s close of 9.180%.
The middle-dated R207 was bid at 8.595% and offered at 8.590% from a previous close of 8.605%.
The rand was at R14.9205/$ from R14.9917/$ on Friday.
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