Johannesburg - South African bonds were firmer in quiet early trade on Friday, but continued to trade within a narrow range.
By 08:50, the benchmark R157 bond was trading at 7.750% from its previous close of 7.770%, while the R207 was bid at 8.500% from its previous close of 8.505%. The R186 was bid at 8.595% from 8.600%.
The rand was bid at R7.0334 to the dollar from its previous close of R7.0521.
"We're a few points firmer this morning, not surprising since we moved around both positive and negative territory throughout yesterday's session.
There's not a lot happening. Today should be quiet. We'll keep an eye on the rand and international developments after concerns were raised about sovereign debt issues yesterday," said a local bond trader.
Standard Bank said that, while a slightly better PPI print did improve the tone of price action, any positive momentum from this release had faded.
"Yesterday's sovereign downgrade of Japan by S&P has created additional uncertainty around core bond markets. Moody's suggestion that the time frame for possible ratings action on the US appeared to be shortening added to these concerns," it said.
Standard Bank said a weekly close around this morning's opening levels looked likely.
Foreigners were net buyers of R720.495m of South African bonds including repo transactions on Thursday after net sales of R3.005bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R55.413bn on Thursday from R77.602bn on Wednesday.
Foreigners were net buyers of R146.314m of South African bonds excluding repo transactions on Thursday after net sales of R1.922bn of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R11.967bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net sellers of R7.794bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
