Investors ignore risk, pile into local bonds on Lagarde’s ECB nomination

SA’s bonds are approaching their strongest level in almost 15 months, strengthening along with their peers in major economies on Wednesday, as investors celebrated the nomination of Christine Lagarde as the new head of the European Central Bank.

The choice of Lagarde makes it more likely that the loose policy that has helped drive bond yields in Europe to record lows and yield-hungry investors to higher-yielding markets such as SA will be maintained...