South African bonds are weak in closing trade on Friday as rand continues to fall.
South African bonds drifted weaker in quiet late trade on Friday as a softer rand weighed on the bond market.
The rand has weakened on the back of a strong dollar and a sell-off in emerging market equities.
By 15:50, the benchmark R157 bond was trading at 7.840% from its previous close of 7.830%, while the R207 was bid at 8.510% from its previous close of 8.480%. The R186 was bid at 8.700% from 8.660%.
The rand was bid at R7.3036/$ from its previous close of R7.2696/$.
"It's been a very quiet session. We've pretty much been following the rand.
Investors are nervous on the back of political tension in Egypt - emerging markets are not being seen as an investor destination, that's why there's been a sell-off," said a local bond trader.
Earlier in the day, another trader said the benchmark R157 had been trading in a 7.870 - 7.810 range this week.
"It hasn't really broken the level. I suspect we'll hold these ranges. The curve has steepened slightly due to some weakness from other major bonds, but on the whole it's been very quiet today," he said.
Foreigners were net sellers of R521.693 million of South African bonds including repo transactions on Thursday, after net sales of R717.378 million of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R43.846bn on Thursday and R51.782bn on Wednesday.
Foreigners were net sellers of R290.634 million of South African bonds excluding repo transactions on Thursday after net sales of R1.038bn of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R8.736bn 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 R4.639bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
