MONDAY, 5.30PM
BONDS ended little changed on Monday after an initial sell-off was countered by Eurorand hedging.
At 4pm the benchmark long government bond, the R150, was quoted 0,5 basis points weaker at a 13,715% yield. The longer-dated R153 bond was one basis point softer at a 13,84% yield. The Eskom E168 bond was 0,5 points stronger at 14,025%.
The US 30 year bond closed on Friday at 6,29%, but traded firmer on Monday to a 6,28% yield.
Two Eurorand bonds were issued on Monday. The European Investment Bank issued a R500m five year bond, while Bayerische Vereinsbank issued a R100m five year bond.
Money market rates were unchanged on Monday morning as the market shortage fell below the R5bn level.
The Reserve Bank indicated the money market shortage on Saturday at R4,972bn, little changed from Friday’s R4,975bn and down from R5,365bn on Thursday.
The three-month BA rate was unchanged in a 15,00/14,80% range. At 4pm the rand was quoted at R4,6685 to the dollar from Friday’s close of R4,6705/dlr.
BUSINESS BRIEFS
SA/JAPAN TRADE PACT
TRADE relations between Japan and South Africa could soon strengthen, following the signing of a treaty over the weekend. The trade treaty, which cuts out double taxation between the two countries, opens doors for increased capital and trade flows.
NO JOBS SUMMIT THIS YEAR
The proposed jobs summit to find solutions for unemployment in South Africa is not likely to be held this year. The summit — originally to have been held this month — has been delayed by a need to get all parties involved through the National Economic, Development and Labour Council.
PENSION FUNDS ADJUDICATOR
FINANCE Minister Trevor Manuel appointed John Murphy as the pension funds adjudicator on Monday. Murphy will take office on January 1 1998, and will be responsible for resolving pension disputes. The position was jointly appointed by Manuel, the deputy registrar of pensions, and the deputy executive officer of the Financial Services Board.
R500m EURORAND BOND
THE European Investment Bank launched a five-year R500-million eurorand bond issue on Monday. The issue, going for 13,5%, is the largest five-year eurorand bond issue so far.