SOUTH African bonds were weaker on Tuesday afternoon as the market lost out in risk-off trade following a slew of negative economic data released on the day.
SA’s current account deficit widened as expected to 4.1% of gross domestic product in the third quarter from 3.1% in the second quarter, the Reserve Bank’s quarterly bulletin showed on Tuesday.
Weaker October mining production, down 4.6% compared with a year ago, also weighed on the rand and subsequently bonds.
Adding to the poor data on the day manufacturing production contracted 2.1% year on year in October.
At 3.30pm, the benchmark R186 was bid at 8.810% and offered at 8.800% from a close of 8.745% on Monday.
The middle-dated R207 was bid at 8.195% and offered at 8.185% from a close of 8.140% previously.
The rand was trading at R14.6780/$ after falling to a record low of R14.6902/$ in intraday trade.
Local bonds did not react to rallying US Treasury bonds, which strengthened on the deflationary effect of a collapsing oil price and risk selling overnight. In the late afternoon the yield on the benchmark 10-year was 1.11% lower at 2.2059%.
"We look to sell R186s below 8.70%," Nedbank Capital said in a note.
by Maarten Mittner,
SA’s current account deficit widened as expected to 4.1% of gross domestic product in the third quarter from 3.1% in the second quarter, the Reserve Bank’s quarterly bulletin showed on Tuesday.
Weaker October mining production, down 4.6% compared with a year ago, also weighed on the rand and subsequently bonds.
Adding to the poor data on the day manufacturing production contracted 2.1% year on year in October.
At 3.30pm, the benchmark R186 was bid at 8.810% and offered at 8.800% from a close of 8.745% on Monday.
The middle-dated R207 was bid at 8.195% and offered at 8.185% from a close of 8.140% previously.
The rand was trading at R14.6780/$ after falling to a record low of R14.6902/$ in intraday trade.
Local bonds did not react to rallying US Treasury bonds, which strengthened on the deflationary effect of a collapsing oil price and risk selling overnight. In the late afternoon the yield on the benchmark 10-year was 1.11% lower at 2.2059%.
"We look to sell R186s below 8.70%," Nedbank Capital said in a note.
by Maarten Mittner,
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