The government's debt costs have risen ahead of Moody's ratings action this week, suggesting that the bond market has already priced in a credit rating downgrade to junk status, economists said. Dave Mohr, chief investment strategist, and Izak Odendaal, investment strategist, both at Old Mutual Multi-Managers, said in a research note on Wednesday that the government's 10-year borrowing cost was 9% and the borrowing cost for households - the prime overdraft rate - at 10.25%, was more than twice nominal national income growth. "Although there is a risk of SA losing its final investment grade rating [from Moody's], the elevated yield suggests we are very much priced in as junk status," they said. PODCAST: Listen to more commentary on the topic. Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm Moody's is the only ratings agency that has SA on investment grade. A downgrade could trigger SA's exit from several major indices, including the World Government Bond Inde...

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