Every week we give you our summary of happenings in the bond market.
The market is anticipating a 25 basis points rate reduction from the South African Reserve Bank this week. The short end of the yield curve will once again benefit should this materialise. We still remain of the view that valuation at the back end of the yield curve should be more sensitive to the very real risks to fiscal consolidation. However, for now, sustained strong foreign bond demand is contributing to the grinding of long bond yields to lower levels.