MARKET WRAP: Bond yields fall as Reserve Bank extends stimulus
The all share rose 5.17%, as did the top 40, with resources and gold miners both up significantly
SA bonds bounced back from record lows after the Reserve Bank announced liquidity measures to ease the effects of the coronavirus in local markets, including a plan to buy government bonds.
The yield on the 2030 government bond fell 83 basis points (bps) to 11.59% on Wednesday, having surged to 12.38% on March 24, from a 2020 low of 8.68% reached in February. Yields move inversely to prices and the surge of the past two weeks was seen as an indication of dislocation in the market as sellers struggled to find buyers.