* Bonds little-changed, waiting for auction
* Rand seen trading within 7.62-65
JOHANNESBURG, March 6 (Reuters) – South Africa’s rand
opened weaker against the dollar on Tuesday as lower growth
expectations for China saw investors cutting their exposure to
commodity-linked currencies, while euro weakness may also drag
the local currency down.
The rand was trading at 7.5751 against the dollar
at 0700 GMT, 0.27 percent weaker than Monday’s New York close of
7.755.
However, analysts said they expected foreign interest in a
Treasury auction of 2.1 billion rand of 2018, 2021
and 2041 government bonds at 0900 GMT, which
should support the rand.
“We expect offshore buying again, continuing the buying seen
at the last few auctions,” Rand Merchant Bank (RMB)said in a
note.
RMB noted there had been very little local interest at
recent auctions, suggesting the government could struggle to
raise the planned funds should foreigners not participate.
Government bonds were little-changed ahead of the auction.
Yields on the two main benchmarks inched up one basis point
each, to 6.7 percent on the 2015 issue and 8.315
percent on the 2026 bond.
On the bourse, stocks looked set for a lower start, with the
March futures contract of the JSE’s blue-chip Top-40
down 0.62 percent before the 0700 GMT start of trade.
Continued…
