REPUBLIC OF SOUTH AFRICA - WEEKLY BOND AUCTION LEVELS AND ASSOCIATED BIDDING AND MARKET MAKING OBLIGATIONS

WEEKLY BOND AUCTION LEVELS AND ASSOCIATED BIDDING AND MARKET MAKING OBLIGATIONS

 Department of National Treasury
 REPUBLIC OF SOUTH AFRICA
 Private Bag X115, Pretoria, 0001. Tel: (+27 12) 315 5944. Fax: (+27 12) 407 9055




 SENS ANNOUNCEMENT



WEEKLY BOND AUCTION LEVELS AND ASSOCIATED BIDDING AND MARKET
MAKING OBLIGATIONS



The Minister of Finance tabled the Budget on the 26th of February 2020. In line with the 2020
Budget Review, auction levels will have to increase to cover the borrowing requirement in domestic
bonds for 2020/21.

The announcement of the new auction levels is expected by the market this week. However, in
light of the recent COVID-19 developments, observed market disturbance and the announced
lockdown commencing tomorrow until 16 April 2020, the National Treasury would like to announce
and affirm the following:

    -    The weekly government bond auctions will continue during the lockdown as normal.
         *The weekly fixed-rate government bond auction amount will remain at
          R4 530 million.
         *The weekly inflation-linked government bond auction amount will remain at
          R1 040 million.
    -    The non-competitive auction has been increased from 50 per cent to 100 per cent of the
         auction amount. The non-competitive bids split is as follows: 70 per cent will be allocated
         to the Electronic Trading Platform and 30 per cent will be allocated to the primary market.
         The revised 100 per cent level will be reviewed post the lockdown.
    -    The new weekly government auction levels will be announced post the lockdown.
    -    The primary dealer’s primary auction bidding obligations have not changed and remains in
         force.
    -    The primary dealer’s secondary market making obligations in the JSE reported market have
         not changed and remains in force.
The National Treasury remains committed to shortening the average term-to-maturity of fixed-rate
bonds auctions during this volatile period and beyond.

For further enquiries contact:

S Shange
Director: Debt Issuance and Management
012 315 5753 / +27 60 969 3755
Date: 26 March 2020

Date: 27-03-2020 07:10:00
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