Every week we give you our summary of happenings in the bond market.
A strong rand was the main driver behind lower bond yields last week. This week it’s all about the tabling of the 2017/18 National Budget. The bond market will not tolerate a drift away from the undertaking to continue on the path of fiscal consolidation. We are cautiously optimistic about the budget, but remain nervous about the political clouds that hover in the background considering its potential negative impact on future fiscal discipline.