SA bond yields show investors shrugged off WGBI exit
Yields on the R2030 government bond have fallen 216 basis points since Moody’s downgraded SA to junk
Some of the highest returns in developing markets proved too much to resist for bond investors, who have largely ignored credit-ratings downgrades and deepening concern about SA’s fiscal position in the Covid-19 pandemic.
SA’s generic 10-year yields, which jumped to records above 13% on March 24 as investors fled in anticipation of Moody’s Investors Service’s review later that month and amid a global run to safe havens, fell below 10% this week for the first time in almost two months. They are still among the juiciest returns about.