SA bond rally fizzles out as investors await revised budget
Despite falling from records above 13% in March, yields remain high compared with other emerging markets
16 June 2020 - 21:35
SA bonds, which initially proved resilient after the country lost its last remaining investment-grade rating, are losing out on a revival in demand for riskier assets ahead of finance minister Tito Mboweni’s revised budget in a week.
Yields on SA 10-year debt have increased in each of the past eight days in their longest run of price declines since mid-March, about 10 days before Moody’s Investors Service pulled the plug on SA’s investment-grade rating, reducing it to junk with all three major ratings agencies...
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