Rand volatility and bond yields rise on news of ANC’s land-reform plan
As the ANC decides to amend the Constitution for land expropriation, investors voice concern that the move will undermine property rights
South African bond yields rose the most in six weeks and a gauge of rand volatility climbed as investors weighed the ANC’s proposal to speed up redistribution of land. The ANC decided to amend the Constitution to make it clearer under what conditions land can be expropriated without compensation, President Cyril Ramaphosa said late on Tuesday. The plan raised concern among some investors that a shift in the land-reform strategy would undermine property rights. An erosion of property rights would "dent investor sentiment, and specifically foreign investors, as it creates a big risk," said Christopher Shiells, the London-based managing analyst for emerging markets at Informa Global Markets. "There remains uncertainty over under what conditions expropriation will take place, and details need to be cleared up." Yields on benchmark 2026 government rand bonds jumped eight basis points to 8.66% by 11.55am in Johannesburg, the biggest increase since June 18 on a closing basis. The rand weak...
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