{"id":9607,"date":"2012-04-04T03:48:53","date_gmt":"2012-04-04T01:48:53","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/s-african-bonds-weaker-after-poor-auction-rand-down\/"},"modified":"2012-04-04T03:48:53","modified_gmt":"2012-04-04T01:48:53","slug":"s-african-bonds-weaker-after-poor-auction-rand-down","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-bonds-weaker-after-poor-auction-rand-down\/","title":{"rendered":"S.African bonds weaker after poor auction, rand down"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Bond market wary of over-supply<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Rand tracks debt market weaker against firm dollar<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, April 3<\/span> (Reuters) &#8211; South Africa&#8217;s rand<br \/>\nweakened against the dollar on Tuesday, partly tracking weaker<br \/>\ngovernment bonds after a weekly auction was poorly received due<br \/>\nto investors&#8217; concerns about over-supply of paper in the coming<br \/>\nmonth.<\/p>\n<p><span><\/span><\/p>\n<p>The yield on the three-year benchmark bond<br \/>\ngained five basis points to 6.725 percent while that for the<br \/>\nlonger dated paper due in 2026 climbed eight basis<br \/>\npoints to 8.43 percent.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The sell-off was mainly on the back of the auction which<br \/>\nwas poorly subscribed today,&#8221; said Richard Farber, a bond trader<br \/>\nat WWC Securities.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;April is generally a pretty poor trading month given all<br \/>\nthe public holidays and guys are aware that you&#8217;ve got basically<br \/>\nthree days before the next auction comes around.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>The weekly auction, in which 2.1 billion rand of the 2018<br \/>\n, 2036 and 2031 issue was on offer,<br \/>\nsaw a lukewarm response from primary dealers, with the<br \/>\nshort-dated paper attracting the highest bid-to-cover ratio at<br \/>\n2.62.<\/p>\n<p><span><\/span><\/p>\n<p>Citi said the poor performance in longer dated paper could<br \/>\nbe linked to the Treasury&#8217;s switch auction programme commencing<br \/>\nin May, in which investors can opt to transfer their money from<br \/>\nsoon-to-mature bonds into longer-term security instead of<br \/>\ncashing it in.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Although this is not new, it may have led market<br \/>\nparticipants, real money investors in particular, to be<br \/>\nparticularly cautious,&#8221; Citi said in a note.<\/p>\n<p><span><\/span><\/p>\n<p>The rand took its cue from the bond market, and was<br \/>\ndown 0.59 percent on the day at 7.6950 by 1557 GMT compared with<br \/>\nMonday&#8217;s close at 7.65.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The bond auction didn&#8217;t really go too well and we saw a<br \/>\nsell-off related to that. Also, the dollar itself has been<br \/>\ngenerally stronger today,&#8221; a Johannesburg currency trader said.\t<\/p>\n<p> (Reporting by Stella Mapenzauswa; editing by Ron Askew)<\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Bond market wary of over-supply * Rand tracks debt market weaker against firm dollar JOHANNESBURG, April 3 (Reuters) &#8211; South Africa&#8217;s rand weakened against the dollar on Tuesday, partly tracking weaker government bonds after a weekly auction was poorly received due to investors&#8217; concerns about over-supply of paper in the coming month. The yield [&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-9607","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\/9607","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=9607"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/9607\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=9607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=9607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=9607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}