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Bond Wrap-up 04.12.2017

04 Dec 2017

Bond Wrap-up

Every week we give you our summary of happenings in the bond market.

National Treasury’s release of October’s main budget data did little to relieve the gloomy outlook for South Africa’s fiscal position – and continues to highlight the risk of structurally low domestic growth on income tax receipts. This, combined with forced liquidation of nominal bonds by index cognisant foreign investors (following S&P Global Ratings action) marked the resumption of the quarter-to-date yield curve sell-off. Although we remain bearish on the near-term prospects for the domestic bond market, we remain vigilant of buying opportunities at higher yields.