{"id":15143,"date":"2012-10-02T05:25:07","date_gmt":"2012-10-02T03:25:07","guid":{"rendered":"http:\/\/www.myza.co.za\/10\/s-african-bonds-sold-post-wgbi-debut-rand-weakens\/"},"modified":"2012-10-02T05:25:07","modified_gmt":"2012-10-02T03:25:07","slug":"s-african-bonds-sold-post-wgbi-debut-rand-weakens","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-bonds-sold-post-wgbi-debut-rand-weakens\/","title":{"rendered":"S.African bonds sold post WGBI debut, rand weakens"},"content":{"rendered":"

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

JOHANNESBURG<\/span> Oct 1 (Reuters) – South Africa’s government
\nbonds sold off sharply on Monday and yields jumped as demand
\nfrom foreign accounts after a much anticipated-debut on
\nCitigroup’s World Government Bond Index did not live up to
\nmarket expectations.<\/span><\/p>\n

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

The rand also turned weaker against the dollar, with
\nsentiment towards South African assets still wobbly after last
\nweek’s sovereign credit downgrade by Moody’s.<\/p>\n

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

Data released last Friday which showed government spending
\nis far outpacing revenue in the current fiscal year, suggesting
\na larger-than expected budget deficit, also weighed on local
\nbonds as players priced in more debt issuance than earlier
\nexpected.<\/p>\n

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

The yield on the three-year benchmark climbed
\nseven basis points to 5.45 percent and that for the 14-year
\nissue, which is also heavily traded on the secondary market,
\njumped 14 basis points to close at 7.57 percent.<\/p>\n

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

“It is clear from the latest government finance figures that
\nthe income is not picking up as expected so we may see a bigger
\ndeficit in the medium-term budget,” said Marten Banninga, head
\nof bond trading at World Wide Capital Securities.<\/p>\n

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

Finance Minister Pravin Gordhan will present the medium-term
\nbudget to parliament later this month.<\/p>\n

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

“Also the hype about WGBI last week has certainly not
\nmaterialised in the way that people anticipated. If you look at
\nthe trading on Friday, foreigners were buyers but people were
\nexpecting far bigger numbers,” Banninga added.<\/p>\n

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

“There was a lot of buying by (local) banks prior to that in
\nanticipation of a take-up by the foreign community which didn’t
\nmaterialise and we saw the selling starting as people realised
\nthat the buyers are not there yet.”<\/p>\n

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

Twelve South African government bonds on Monday officially
\njoined others from 22 other countries listed on the WGBI tracked
\nby an estimated $2 trillion worth of funds.<\/p>\n

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

Market watchers reckon demand from funds that track the
\nindex has accounted for much of the nearly 71 billion rand worth
\nof local bonds purchased by foreign accounts so far this year.<\/p>\n

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

Like bonds, the rand also struggled on Monday,
\nreversing earlier gains to trade at 8.3699 to the greenback by
\n1606 GMT, down 0.66 percent from Friday’s close in New York.<\/p>\n

(Reporting by Stella Mapenzauswa; editing by Stephen Nisbet)<\/p>\n

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

\n

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

JOHANNESBURG Oct 1 (Reuters) – South Africa’s government bonds sold off sharply on Monday and yields jumped as demand from foreign accounts after a much anticipated-debut on Citigroup’s World Government Bond Index did not live up to market expectations. The rand also turned weaker against the dollar, with sentiment towards South African assets still wobbly […]<\/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-15143","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\/15143","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=15143"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/15143\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=15143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=15143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=15143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}