Rand survives 67% drop in demand for government bonds
September’s balance of trade is expected to show a surplus of about R4bn, down from R8.8bn in August
The rand weakened slightly overnight to trade at R14.64/$ at 6am on Wednesday morning following disappointing interest in the first weekly government bond auction since new finance minister Tito Mboweni presented the medium-term budget last week.
Bloomberg reported primary dealers that buy bonds directly from the South African government on Tuesday placed R4.17bn of orders, well below the R7.4bn average over the past eight months. “In the first scheduled bond auction since Mboweni delivered his fiscal update to [MPs] on October 24, demand dropped 67% from the previous sale to the lowest since March, when the amount offered was reduced to R2.4bn a week,” Bloomberg reported on Tuesday...
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