The Treasury had no trouble selling a record amount of debt at its weekly fixed-rate auction on Tuesday — but it came at a cost. Primary dealers placed orders for more than three times the amount of debt on sale, snapping up yields as much as 75 basis points higher than were available two months ago. The country’s debt has sagged amid concern about a widening budget deficit and a populist turn in government spending ahead of the governing ANC party’s leadership elections in December. Deputy President Cyril Ramaphosa and MP Nkosazana Dlamini-Zuma are widely regarded as frontrunners in the race to lead the party. The sale attracted bids of R10.9bn for the R3.3bn of notes of four maturities, with clearing yields on all four bonds jumping. Securities maturing in 2044 were the most popular, with demand of four times the amount on offer. However, the clearing yield of 10.405% was 46 basis points higher than when the notes were last sold on October 17. WATCH: James Turp from Absa Asset Man...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.