Stronger rand adds some shine

South African bonds were up to 4 basis points firmer in midday play on Friday, which a trader attributed to improved sentiment on the back of a stronger local currency.

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Bonds a bit firmer in quiet trade

At 11:50, the benchmark R157 bond was trading at 6.620%, from its previous close of 6.650%. The R207 was bid at 7.745% and offered at 7.715% from a previous close of 7.765% and the R186 was trading at 8.250% from its close of 8.290%.

The rand was bid at 7.7407 against the dollar from its previous close of 7.7653.

With no local data due today, markets will eye their international counterparts for direction.

Foreigners were net buyers of R240.614 million of South African bonds including repo transactions on Thursday after net sales of R298.876 million of local bonds on Wednesday, data released by the JSE shows.

Nominal cumulative volume was R60.368 billion on Thursday from R66.660 billion on Wednesday.

Foreigners were net buyers of R232.119 billion of South African bonds excluding repo transactions on Thursday after net sales of R313.483 million of local bonds on Wednesday.

For the year to date foreigners have been net buyers of R11.748 billion of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359 billion worth of local bonds, excluding repo transactions.

In the year to date foreigners have been net buyers of R10.197 billion of local bonds including repo transactions. In 2011 they bought R37.501 billion of local bonds.