{"id":14951,"date":"2012-09-26T04:54:57","date_gmt":"2012-09-26T02:54:57","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/s-african-rand-firms-bonds-rally-on-offshore-demand\/"},"modified":"2012-09-26T04:54:57","modified_gmt":"2012-09-26T02:54:57","slug":"s-african-rand-firms-bonds-rally-on-offshore-demand","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-rand-firms-bonds-rally-on-offshore-demand\/","title":{"rendered":"S.African rand firms, bonds rally on offshore demand"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, Sept 25<\/span> (Reuters) &#8211; South African government<br \/>\nbonds jumped on Tuesday as markets reopened after a public<br \/>\nholiday, while the rand firmed against the dollar, tracking a<br \/>\ngeneral emerging market rally.<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>The yield on the three year benchmark closed six<br \/>\nbasis points lower on the secondary market at 5.31 percent and<br \/>\nthe yield on 14-year paper fell 14 basis points to 7.305<br \/>\npercent.<\/p>\n<p><span><\/span><\/p>\n<p>Yields were also sharply lower at the Treasury&#8217;s weekly<br \/>\nprimary auction when it sold 2.1 billion rand ($257.15 million)<br \/>\nof its 2023, 2026 and 2048<br \/>\npaper, with bid-to-cover ratios coming in as high as 5.39.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;We had a holiday yesterday when there was no trade so we&#8217;re<br \/>\nplaying a bit of catch-up. The currency is also a bit firmer<br \/>\nthan it was when we left on Friday and U.S. Treasuries have<br \/>\nrallied as well,&#8221; said Daniel Sabiston, a bond dealer at Absa<br \/>\nCapital.<\/p>\n<p><span><\/span><\/p>\n<p>Demand was particular strong at the longer end of the curve.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The people who are buying are typically offshore accounts<br \/>\nand if they have a bullish view on the market they tend to buy<br \/>\n(longer) duration bonds and that&#8217;s why the curve has flattened,&#8221;<br \/>\nSabiston said.<\/p>\n<p><span><\/span><\/p>\n<p>The rand strengthened as much as 0.97 percent<br \/>\nagainst the dollar during the Johannesburg session before<br \/>\nretreating to 8.1941 by 1605 GMT, still up 0.6 percent from its<br \/>\nprevious close.<\/p>\n<p><span><\/span><\/p>\n<p>It moved largely in tandem with a buoyant euro, the currency<br \/>\nof South Africa&#8217;s main trading partner, which firmed after the<br \/>\nEuropean Central Bank defended its bond-buying plans aimed at<br \/>\neasing pressure on heavily indebted euro zone countries.<\/p>\n<p><span><\/span><\/p>\n<p>Demand for local debt has also been anchored by South<br \/>\nAfrica&#8217;s imminent inclusion on Oct. 1 in the World Government<br \/>\nBond Index (WGBI}, tracked by fund managers.<\/p>\n<p><span><\/span><\/p>\n<p>In its monetary policy statement last week, the Reserve Bank<br \/>\nsaid non-resident purchases of bonds, currently amounting to<br \/>\nnearly 75 billion rand since the start of the year, should<br \/>\npersist for some time as portfolios adjust to the WGBI<br \/>\ninclusion.<\/p>\n<p> (Reporting by Stella Mapenzauswa; Editing by Susan Fenton)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JOHANNESBURG, Sept 25 (Reuters) &#8211; South African government bonds jumped on Tuesday as markets reopened after a public holiday, while the rand firmed against the dollar, tracking a general emerging market rally. The yield on the three year benchmark closed six basis points lower on the secondary market at 5.31 percent and the yield on [&hellip;]<\/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-14951","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\/14951","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=14951"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14951\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}