Every week we give you our summary of happenings in the bond market.
Moody’s finally joined the ratings downgrade party. The one notch downgrade to both currency ratings as well as the negative outlook was widely expected. We are a lot more concerned about the surprisingly weak Q1 GDP data release. Weak growth carries a strong risk to fiscal consolidation via lower tax revenue collections. National Treasury may very well find themselves in a position where they are forced to sell more bonds by the end of this year.