Demand for SA government bonds soars as local investors step in
The weekly auction received R16.3bn in orders from dealers buying directly from the government, showing there is plenty of demand
Demand soared at a weekly auction of South African government bonds as local investors stepped in to snap up yields pushed higher by foreign selling. The primary dealers that buy bonds directly from the government placed R16.3bn of orders, or almost seven times the R2.4bn of securities on sale, according to data published by the Reserve Bank. That’s the most since March, when the government reduced the amount of notes sold every week from R3.3bn.
The auction showed that there is plenty of demand for government bonds from SA’s R2.3-trillion investor base, even as foreigners dump the debt. Non-residents have off-loaded a net R63.6bn of South African bonds since the beginning of April amid an emerging-market sell-off sparked by rising US rates, a stronger dollar and geopolitical tensions, including Turkey’s financial crisis...
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