* Longer-dated government bonds under pressure
* Risk aversion rises on euro zone debt fears
By Vuyani Ndaba
JOHANNESBURG, April 5 (Reuters) – South African government
bonds weakened on Thursday due to heightened risk aversion
emanating from the euro zone, although movements were
exaggerated by thin trading volumes ahead of the Easter market
holiday.
The rand was at 7.827 against the dollar at 1540 GMT, little
changed from Wednesday’s New York close of 7.832.
Earlier in the session the currency had been under pressure
due to concerns about sovereign debt risk in the euro zone after
a poor Spanish debt auction, and a dip in long-term economic
confidence suggested by the Reuters Econometer survey.
“Eurozone fears hurts rand and the dip in Reuters Econometer
to 262.31,” IFR, a Thomson Reuters market analysis service,
said.
The Reuters Econometer, a confidence index that measures
economists’ views two years ahead, fell to 262.31 from 266.84 in
the February poll, driven by concerns about growth in Europe,
South Africa’s largest trading partner.
The 2015 bond yield was up one basis point at 6.82
percent. More pressure built up on the longer-dated 2026 paper
, with its yield jumping four basis points to 8.55
percent.
Continued…
