Every week we give you our summary of happenings in the bond market.
From our side, the very disturbing developments at National Treasury, i.e. the undermining of the budget process, seems to be gaining momentum. While it is true that bond market valuation has improved following some net foreign investor selling post the MTBPS, the investment theme remains particularly bleak. Although we have utilized recent market weakness to reduce our large underweight modified duration position, we still opt for an overall defensive position.