{"id":14715,"date":"2012-09-18T04:36:58","date_gmt":"2012-09-18T02:36:58","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/long-s-africa-bonds-fall-on-shock-current-acc-mining-strife\/"},"modified":"2012-09-18T04:36:58","modified_gmt":"2012-09-18T02:36:58","slug":"long-s-africa-bonds-fall-on-shock-current-acc-mining-strife","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/long-s-africa-bonds-fall-on-shock-current-acc-mining-strife\/","title":{"rendered":"Long S.Africa bonds fall on shock current acc, mining strife"},"content":{"rendered":"

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

* Speculators get out of long bond positions<\/span><\/p>\n

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

* Trigger a sell-off to 2-month low prices<\/p>\n

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

JOHANNESBURG, Sept 17<\/span> (Reuters) – South African government
\nbonds weakened on the longer end of the yield curve as a slide
\nthat begun after poor current account data last week combined
\nwith negative sentiment around a mining labour strife on Monday
\nto drive yields to 2-month highs.<\/p>\n

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

The rand hit a one-week low on the day as local indicators
\ndiscouraged investors against holding the currency.<\/p>\n

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

Bond yields rose to a month high on the 2021 and
\n2023 paper, while that on the benchmark R186 climbed
\n7.695 percent, its worst in two months.<\/p>\n

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

“There was a heavy offshore position in the R209 and R186
\narea and they’ve all liquidated since the current account number
\nlast week,” said Mark Southworth, a bond trader for Citi in
\nJohannesburg.<\/p>\n

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

Constant weekly issuance by the government also exerts
\ndownward pressure on bond prices and the Treasury is selling the
\n2023, 2041 and 2048 debt on Tuesday, all
\npaper in the middle to back end of the curve that is already
\ncrowded by foreign investors.<\/p>\n

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

Foreign accounts sold 2.8 billion rand in local bonds last
\nweek, the biggest weekly sell-off since a month ago according to
\ndata from the securities exchange.<\/p>\n

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

“The positioning in long South African bonds was too heavy.
\nThe current account deficit (happened) and the mining turmoil
\ndidn’t help,” Citi’s Southworth said.<\/p>\n

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

The rand was at 8.2350 to the dollar at 1621 GMT,
\n0.3 percent weaker than Friday’s New York close of 8.21.<\/p>\n

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

“Both the deteriorating external imbalances and the
\nintensifying labour unrest represent clear risks for a weaker
\nrand,” said Danske Bank’s emerging market analysts in a note,
\nadding that as the rand was already over-valued, there was
\nlimited space for strength in South Africa’s currency.<\/p>\n

(Reporting by Xola Potelwa; editing by Ron Askew)<\/p>\n

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

\n

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

* Speculators get out of long bond positions * Trigger a sell-off to 2-month low prices JOHANNESBURG, Sept 17 (Reuters) – South African government bonds weakened on the longer end of the yield curve as a slide that begun after poor current account data last week combined with negative sentiment around a mining labour strife […]<\/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-14715","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\/14715","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=14715"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14715\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}