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Bond Wrap-up 22.01.2018

22 Jan 2018

Bond Wrap-up

Every week we give you our summary of happenings in the bond market.

This week’s domestic and US inflation data in particular will continue to provide important signals on the near-term monetary policy paths of both economies. However, the biggest bond market watch-point will be developments at Eskom following the weekend announcement of measures to strengthen governance, including the appointment of a new board. We welcome these developments, but highlight the severity of Eskom’s funding, liquidity, regulatory and governance concerns. Eskom is in survival mode, and the signaling effect of developments are now critical to the fiscus and SA sovereign risk.