MARKET WRAP: Long-term bond yields fall as Bank cuts repo rate
The Reserve Bank has cut the repo rate by 300bps so far in 2020 as Covid-19 brought economic activity almost to a halt
Bond yields at the long end of the curve fell as the Reserve Bank cut the repo rate for a fifth time in 2020 on Thursday.
The yield on the R2030 government bond fell 11 basis points (bps) to 9.12%, reaching an intra-day low of 9.06% after the interest-rate announcement, its lowest since June 9; while that of the 30-year bond fell 22bps to 11.30%, reaching an intra-day low of 11.22%, its lowest since July 1. Bond yields move inversely to their prices.