{"id":12765,"date":"2012-07-26T01:31:50","date_gmt":"2012-07-25T23:31:50","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/s-african-bonds-rally-rand-claws-back-some-ground\/"},"modified":"2012-07-26T01:31:50","modified_gmt":"2012-07-25T23:31:50","slug":"s-african-bonds-rally-rand-claws-back-some-ground","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-bonds-rally-rand-claws-back-some-ground\/","title":{"rendered":"S.African bonds rally, rand claws back some ground"},"content":{"rendered":"

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

JOHANNESBURG, July 25<\/span> (Reuters) – Yields were sharply lower
\nas South Africa’s government bonds rallied on Wednesday, with
\ninvestors seeing bargains in the local debt market after the
\nprevious day’s heavy sell-off.<\/span><\/p>\n

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

The rand gained as much as 1.3 percent against the
\ndollar before retreating later in the session and traders said
\nnagging worries about euro zone debt problems were likely to cap
\nany significant gains.<\/p>\n

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

The yield for the three-year bond which trades
\nheavily on the secondary market closed 9.5 basis points lower at
\n5.39 percent while that for the 14-year paper fell
\n14.5 basis points to 7.335 percent.<\/p>\n

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

Demand was picking up again following a brief correction
\nafter last week’s unexpected 50 basis point cut in the benchmark
\nrepo rate by the Reserve Bank’s monetary policy committee (MPC)
\npushed yields to record lows, traders said.<\/p>\n

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

“They (bonds) present value again. We’ve seen a huge
\nretracement in bond yields since the MPC — the market was
\nnearly half a percent up at one stage this morning from the low
\nafter MPC last week,” said Ian Scott, a portfolio manager at
\nStanlib.<\/p>\n

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

“Spanish yields have come off their highs a little bit and
\nwe also saw the euro strengthen today. This all helps the local
\nbond market, but how long it will last we don’t know — it’s a
\ntypical risk-on, risk-off scenario.”<\/p>\n

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

The rand was trading at 8.4567 against the
\ngreenback by 1618 GMT — off a session high of 8.4080 but up
\n0.74 percent from Tuesday’s closing level of 8.52.<\/p>\n

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

“It’s really euro dependent at the moment,” said Rand
\nMerchant Bank trader Jim Bryson, alluding to the rand’s tendency
\nto track the common currency mainly because of South Africa’s
\nclose trading links with the euro zone.<\/p>\n

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

“If we can get some more traction on the euro, the rand
\nstays in ranges but the danger is still the downside for the
\neuro.”<\/p>\n

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

The rand has taken a pounding against the dollar this year,
\nhitting a three year low of 8.71\/dollar in early June as the
\neuro zone debt crisis spawned aversion to emerging market assets
\nperceived as carrying higher risks for investors.<\/p>\n

(Reporting by Stella Mapenzauswa)<\/p>\n

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

\n

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

JOHANNESBURG, July 25 (Reuters) – Yields were sharply lower as South Africa’s government bonds rallied on Wednesday, with investors seeing bargains in the local debt market after the previous day’s heavy sell-off. The rand gained as much as 1.3 percent against the dollar before retreating later in the session and traders said nagging worries about […]<\/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-12765","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\/12765","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=12765"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12765\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}