South African bond yields remained firm in early trade on Wednesday, continuing to be led by the strong rand in the absence of any market moving news.
By 9am, the short-term government R154 bond was bid at 7.370 percent from a previous close of 7.280 percent. The medium-term R157 was bid at 8.075 percent from 8.080 percent, while the long-term R186 was bid at 8.585 percent from 8.680 percent.
The rand was bid at R7.3623/$ from a previous close of R7.3715/$.
"We could expect bonds to move stronger with the rand. But it is very quiet and there is not a lot of volume going through at the moment," a local bond trader said.
Foreigners were net buyers of R1.158 billion worth of South African bonds including repo transactions on Tuesday, after net purchases of R249.540 million worth of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R113.210 billion on Tuesday from R41.979 billion on Monday.
Foreigners were net buyers of R1.138 billion worth of South African bonds, excluding repo transactions, on Tuesday, after net purchases of R250.188 million worth of local bonds on Friday.
On a year-to-date basis, foreigners have been net buyers of R19.996 billion worth of local bonds, excluding repo transactions.
On a year to date basis for total transactions, including repo transactions, foreigners have been net sellers of R1.054 billion.