{"id":8302,"date":"2012-02-25T02:33:28","date_gmt":"2012-02-25T00:33:28","guid":{"rendered":"http:\/\/www.myza.co.za\/02\/south-africas-rand-firms-bonds-recoup-some-losses\/"},"modified":"2012-02-25T02:33:28","modified_gmt":"2012-02-25T00:33:28","slug":"south-africas-rand-firms-bonds-recoup-some-losses","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/south-africas-rand-firms-bonds-recoup-some-losses\/","title":{"rendered":"South Africa’s rand firms, bonds recoup some losses"},"content":{"rendered":"

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

* Rand breaks above 7.64, 7.52 in sight<\/span><\/p>\n

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

* Market still sees strong supply of local bonds<\/p>\n

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

JOHANNESBURG<\/span> Feb 24 (Reuters) – South Africa’s rand
\ntouched two-week highs against a broadly weaker dollar on Friday
\nand bonds reversed some of their recent losses, although
\ncontinued scepticism that a lower budget deficit will cap supply
\nshould maintain pressure on local debt.<\/p>\n

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

The yield on the 2015 bond closed 1.5 basis points
\nlower at 6.66 percent while that for the 14-year issue
\ndipped 2.5 basis points to 8.28 percent.<\/p>\n

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

Government bonds have taken a knock as the market remains
\nunconvinced that the National Treasury’s forecast of a
\nnarrower budget deficit of 4.6 percent of GDP in the financial
\nyear ending March 2013 from 4.8 percent in 2011\/12 implies a
\nreduction in the overall supply of local debt.<\/p>\n

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

“With a 76.9 billion rand ($10.13 billion) borrowing
\nrequirement for state-owned entities, it’s highly likely that
\nthe companies will utilise the positive headlines from the
\nnational budget to step up their financing in the coming weeks,”
\nHSBC analyst Di Luo said.<\/p>\n

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

“Therefore, the actual supply in the domestic bond market in
\nthe remaining first half of this year could easily overshoot 3
\nbillion rand a week. The crowding out effect implies risk
\npremium and volatility.”<\/p>\n

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

Fears of rising inflation as international crude prices
\nclimb above $124 a barrel are also expected to keep bonds under
\npressure.<\/p>\n

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

The rand gained as much as one percent against the greenback
\nto a session high of 7.58, its strongest level since Feb. 10.<\/p>\n

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

By 1643 GMT the currency was trading at
\n7.5950\/dollar, up 0.85 percent from Thursday’s New York close of
\n7.66.<\/p>\n

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

A close above 7.64 on Friday, a level the rand has struggled
\nto break convincingly above over the past fortnight, could open
\nup this year’s high of 7.52.
\n ($1 = 7.5926 South African rand)\t<\/p>\n

(Reporting by Stella Mapenzauswa; 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":"

* Rand breaks above 7.64, 7.52 in sight * Market still sees strong supply of local bonds JOHANNESBURG Feb 24 (Reuters) – South Africa’s rand touched two-week highs against a broadly weaker dollar on Friday and bonds reversed some of their recent losses, although continued scepticism that a lower budget deficit will cap supply should […]<\/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-8302","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\/8302","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=8302"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8302\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=8302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=8302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=8302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}