Every week we give you our summary of happenings in the bond market.
Last week was sobering for bond bulls. Nervousness about the near-term outlook for very loose monetary policy forced the holders of stale long positions to reconsider, especially in Europe and the US. Locally, we suspect that significant market weakness was mostly as a result of selling by foreign investors who probably realised that all is not well down south after all. We remain bearish on the near-term prospects for the local bond market.