The Bond Exchange of South Africa Limited (BESA) recorded its largest daily turnover figure ever on 22 September, topping R200 billion nominal during Monday’s trade. However, whilst turnover continues to show strong performance, yields have remained relatively stable since the beginning of September. The benchmark R153 was recorded at 9.620 yesterday yet this and other key bond yields may react on the back of inflation data to be reported by Stats SA later today.
Since 2007, BESA has continued to post record turnover performance in the context of challenging financial markets. Last year the exchange reported record bond market turnover of R13.8 trillion nominal for 2007 and current projections for 2008 see this figure reaching in excess of R17 trillion. From a liquidity perspective this equates to projected market velocity of roughly 28 times BESA’s current market cap.