In 2020 and early 2021 there was a fevered debate in bank boardrooms and among asset managers about SA falling over the fiscal cliff edge.

While at the time the Reserve Bank’s “not quantitative easing” bond-buying programme had been only brief around the second quarter of 2020, it had a lasting effect on narrowing from the extreme peak the spread of yields at which you can buy and sell bonds. However, the very large gross financing requirements that the Treasury had to fulfil were spiking from R416bn in 2019/20 to R618bn in 2020/21, and yields were still high and climbing...

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