South Africans benefited from a powerful demonstration of our integration into global capital markets this week. On Tuesday the yield on the key 10-year US treasury bond fell from 4.63% to 4.44%. By the end of the day the 10-year RSA bond yield had followed suit, declining from 11.66% to 11.45%.

The yield on an RSA dollar-denominated five-year bond fell from 7.52% to 7.19%, leaving the yield spread with the US treasury bond, an objective measure of SA sovereign risk, slightly compressed. The dollar weakened across the board. And with higher bond values, share markets almost everywhere responded agreeably for investors and pension plans. The JSE gained nearly 2% on Tuesday and almost another 2% on Wednesday...

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