* Bond yields hit fresh records
* Rand ends firmer but within range
JOHANNESBURG, July 13 (Reuters) – South African government
bond prices hit record highs again on Friday on expectations
that the central bank will sit tight on low rates and sound a
dovish note next week, while the rand ended a bad week firmer
against the dollar.
The rand was up 0.65 percent on the dollar to 8.2707 at 1518
GMT, off a 8.3250 close in New York on Thursday. It was trading
within Thursday’s range but had retreated from 8.37 support.
Dealers say the local unit tracked firmer levels in the
euro, which took advantage of a broadly weaker greenback.
Yields on government bonds plunged to new lows on Friday as
some players got paid in the swaps market. Yields move inversely
to prices.
The 2015 and 2021 issues hit fresh
records at 5.81 percent and 6.97 percent respectively.
“There was some follow-through buying from yesterday in bond
markets but the 10-year swap points specifically were quite
offered in the derivatives market,” said Garth Klintworth, head
of fixed income commodities and currencies at Absa Capital.
Dealers said although foreigners continued to be net buyers
on Friday, volume in the spot market was thin and yields
followed activity in the derivatives market, where players were
receiving payment on a 10-year interest rate swap contract.
Continued…
