Foreign investors return to SA’s bond market after three months of selling
After almost three months of unabated selling, foreign investors are making a cautious return to SA’s bond market. Non-residents were net buyers of the country’s government debt for the second week running last week, as emerging-market sentiment improved and inflation in SA fell short of analysts’ estimates. The inflows have been small: about R1.6bn since July 9, compared with almost R60bn of outflows in the second quarter, according to JSE data. But the move marks a turnaround from 11 straight weeks of outflows sparked by a stronger dollar and rising US treasury rates. "Stabilisation of sentiment has led to a reversal of flows back into bond markets" across most developing nations, said Richard Segal, a London-based senior analyst at Manulife Asset Management. "In SA, though, the lower-than-expected June inflation data was a positive and bullish surprise. Assuming the news flow remains relatively quiet then probably, yes, inflows will continue." While the threat of more tariffs bet...
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