The June purchases were roughly half of what was bought in May
The SA Reserve Bank increased its holdings of government bonds at a slower pace in June, taking up R5.1bn through the bond buying programme launched to smooth the functioning of the local market and inject liquidity into the financial system.
, and take its total holding of government bonds to R35.9bn since it announced the programme on March 25, data from the bank showed on Tuesday. The Bank has not revealed a target for the purchases but has indicated that it will continue to make them until market dynamics have normalised. The Bank was forced to intervene after government bonds came under pressure as investors fled to safe-haven assets amid Covid-19 related panic, causing bond yields to breach the 13% mark in late March.Along with the bond purchases, the Bank has adopted other measures to support an economy hit by the effects of lockdown restrictions, including slashing interest rates to record lows of 3.75% and easing banking regulations to encourage banks to keep lending through the crisis.
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