Picture: INVESTORS MONTHLY
Picture: INVESTORS MONTHLY

LOCAL bonds were weaker in midday trade on Tuesday in a softer rand environment, as the market awaited the release of consumer inflation data on Wednesday.

Inflation, as measured by the consumer price index (CPI), was expected to have tracked higher in February from 6.2% year on year in January.

At noon, the benchmark R186 bond was bid at 9.290% and offered at 9.280% from a close on Friday of 9.160%.

The middle-dated R207 was bid at 8.775% and offered at 8.760% from a previous close of 8.640%.

Local markets were closed on Monday for Human Rights Day.

European bonds were likely to open unchanged as equities were set to remain flat, Dow Jones Newswires said.

Nedbank CIB said in a note on Tuesday that bond inflows had continued to be the driving force last week, with consistent inflows totalling R7.32bn, taking the year-to-date bond inflow to R18.31bn.

"Last week also saw a tentative inflow into the equity market loaded toward the latter part of the week, reversing the outflow from (earlier) last week.

"For the year to date, equity flows remain poor with an outflow of R11.75bn largely offset by the bond inflow, to take total inflow to R6.563bn. This compares favourably to the outflow of R10.76bn for the same period last year," the bank said.