JOHANNESBURG, Feb 3 (Reuters) - South Africa sold 800 million rand worth of 2017
, 2028 and 2033 CPI inflation-linked bonds on
Friday after receiving bids worth 1.97 billion rand. The yield on the 2017 bond fell to 0.91
percent from 1.25 percent while the 2028 and 2033 yields nudged higher.
Traders say demand for the index-linked bonds has been rising, driving yields down, as
investors seek to protect their returns against inflation.
Annual inflation has breached the upper end of the central bank's 3-6 percent target band,
coming in at 6.1 percent in December. The central bank has raised its CPI forecasts and now
expects consumer inflation to remain above the target until 2013.
Feb 3 Jan 27 Feb3 Jan 27 Feb 3 Nov 11
Bond R210 R210 R202 R202 R211 R211
Coupon (pct) 2.6 2.6 3.45 3.45 2.5 2.5
Allocated (R'bln) 0.43 0.40 0.25 0.20 0.12 0.02
Bids received (R'bln) 0.85 0.89 1.00 0.40 0.12 0.02
Clearing yield (pct) 2.34 2.33 2.30 2.28 0.91 1.25
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