JOHANNESBURG Jan 20 (Reuters) – South Africa sold all
of the 800 million rand ($100 million) it offered of inflation
linked bonds, spread between its 2022, 2028
and 2033 paper at a weekly auction on Friday.
Investors came in for 1.53 billion rand, compared to the 140
million rand of bids received at last week’s sale. Demand for
the index-linked bonds has been rising steadily since late last
year, pushing yields down as investors hedge against rising
inflation.
Headline inflation, at 6.1 percent in November, remains out
of the cental bank’s target of between 3 and 6 percent.
The bank kept interest rates steady on Thursday at its first
policy setting meeting of the year, but raised its inflation
forecasts, saying the outlook had deteriorated and CPI would
only return to within the target range in 2013.
Jan 20 Jan 13
R210 R212 R202 R210 R212 R202
Coupon % 2.6 2.75 3.45 2.6 2.75 3.45
Allocated (R’bln) 0.625 0.100 0.075 0.00 0.14 0.00
Bids received (R’bln) 0.625 0.100 0.805 0.00 0.14 0.00
Clearing yield % 2.38 2.16 2.30 0.00 2.17 0.00
Continued…
