With only three more government bond auctions remaining in 2019, investors have found it hard to resist yields bettered only by Turkey, Nigeria and Lebanon among emerging-market peers
Demand at the weekly government bond auction surged as investors stocked up on some of the most attractive yields in emerging markets before supply dries up into the year-end.
S&P Global Ratings cut the outlook on SA’s BB credit rating to negative on Friday, driving yields on benchmark 2026 securities up 13 basis points in the past two days to 8.5%, the highest in more than two weeks. Moody’s Investors Service, the only major rating company still to assess the nation at investment level, also has a negative outlook.
“Bonds have been under pressure over the past two days as uncertainties regarding SA’s fiscal woes weighed,” RMB analyst Michelle Wohlberg said. “This resulted in relatively attractive levels leading into today’s auction. With limited supply in December as the Treasury stops issuing bonds after December 17, buying bonds at these yields makes sense.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SA miners’ conundrum: palladium and rhodium output poser for platinumMiners are loath to boost production as it could result in a platinum surplus and lower prices
Read more »
SA finds a thrill on Blueberry HillBerry industry set for phenomenal growth over the next five years, with vastly increased plantings
Read more »
Agri SA sounds foot-and-mouth disease warningAgricultural organisation Agri SA has warned that the banning of livestock auctions as a result of a foot-and-mouth disease outbreak in Limpopo could have an adverse economic impact.
Read more »
Agri SA sounds foot-and-mouth disease warningAgricultural organisation Agri SA has warned that the banning of livestock auctions as a result of a foot-and-mouth disease outbreak in Limpopo could have an adverse economic impact.
Read more »
WATCH | A wild treasure hunt is the best way to see this SA mining dorpieThe biggest diamond in the world was mined in Cullinan, and those who live there won't let you forget it.
Read more »