A sell-off in SA bonds that has pushed up benchmark yields by 78 basis points since the start of the year makes them an even more compelling investment despite ongoing concerns about worldwide inflation amid a flood of global monetary and fiscal stimulus in response to the Covid-19 pandemic.

That is the view of Momentum Investments’s head of fixed income, Ian Scott, who says the spike in SA yields makes local government bonds “cheap”, rendering them a better investment than low-risk money market instruments or cash. Momentum Investments oversaw about R260bn in assets as at March 31...

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