{"id":12510,"date":"2012-07-18T00:55:44","date_gmt":"2012-07-17T22:55:44","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/domestic-investors-help-push-s-african-bond-yields-lower\/"},"modified":"2012-07-18T00:55:44","modified_gmt":"2012-07-17T22:55:44","slug":"domestic-investors-help-push-s-african-bond-yields-lower","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/domestic-investors-help-push-s-african-bond-yields-lower\/","title":{"rendered":"Domestic investors help push S.African bond yields lower"},"content":{"rendered":"

\t\t<\/span><\/p>\n

JOHANNESBURG, July 17<\/span> (Reuters) – South African government
\nbond yields continued their decline on Tuesday, with the return
\non three-year bonds hitting a record low, as domestic investors
\njoin foreigners in the hunt for yield.<\/span><\/p>\n

<\/span><\/p>\n

The rand weakened slightly against the dollar as the market
\ndigested U.S. Federal Reserve chairman Ben Bernanke’s promise of
\nfurther stimulus for the sluggish U.S. economy if needed, though
\nhe provided no specific details.<\/p>\n

<\/span><\/p>\n

At 1538 GMT, the rand was down 0.2 percent against the
\ndollar, from Monday’s New York close of 8.2100.<\/p>\n

<\/span><\/p>\n

Bernanke told lawmakers that the Fed was “prepared to take
\nfurther action” to support an economy struggling to create jobs
\nbut did not spell out what that would entail.<\/p>\n

<\/span><\/p>\n

“It will be disappointing for some,” Luke Barnett, an
\nanalyst at ETM Analytics said of the testimony. “Some people
\nwere expecting a time frame or measures he was going to
\nintroduce.”<\/p>\n

<\/span><\/p>\n

Barnett said the rand would probably continue to trade
\nwithin a tight range ahead of the South African Reserve Bank’s
\ninterest rate decision on Thursday. The majority of economists
\npolled by Reuters expect the bank to hold its repo rate at 5.5
\npercent.<\/p>\n

<\/span><\/p>\n

The yield on South Africa’s benchmark 3-year bond
\nfell to yet another record low of 5.71 percent, down 5 basis
\npoints from Monday, while that on the 14-year bond
\ndropped to 7.435 percent from 7.566 percent previously, its
\nlowest since 2009.<\/p>\n

<\/span><\/p>\n

Increased buying by domestic investors was helping to push
\nyields lower, said Ashley Dickinson, a bond trader at
\nRenaissance Capital.<\/p>\n

<\/span><\/p>\n

“Over the last week we’ve seen local investors getting
\ninvolved,” he said. “I think they realised that they had missed
\nthe boat with the initial rally in the market. Most of the fund
\nmanagers in the South African space are still pretty much
\nunderweight bonds.”<\/p>\n

<\/span><\/p>\n

South Africa’s Treasury sold a total 2.1 billion rand
\n($255.39 million) worth of its 2023, 2036
\nand 2048 bonds on Tuesday, with yields declining
\nacross all tenors.<\/p>\n

(Reporting by Tosin Sulaiman)<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

JOHANNESBURG, July 17 (Reuters) – South African government bond yields continued their decline on Tuesday, with the return on three-year bonds hitting a record low, as domestic investors join foreigners in the hunt for yield. The rand weakened slightly against the dollar as the market digested U.S. Federal Reserve chairman Ben Bernanke’s promise of further […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12510","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12510"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12510\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}