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\t\t<\/span><\/p>\n <\/span><\/p>\n \n \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":" * Local bonds to have 0.41 percent weight on index * Govt bonds gain after news (Adds market reaction, trader comments, background) JOHANNESBURG, June 11 (Reuters) – South Africa will join Citi’s influential World Government Bond Index (WGBI) from October, the U.S. bank said on Monday, conferring an important seal of approval on the continent’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-11350","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=11350"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11350\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=11350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=11350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=11350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}* Local bonds to have 0.41 percent weight on index\n * Govt bonds gain after news\n\n (Adds market reaction, trader comments, background)\t\n JOHANNESBURG, June 11 (Reuters) - South Africa will join\nCiti's influential World Government Bond Index (WGBI) from\nOctober, the U.S. bank said on Monday, conferring an important\nseal of approval on the continent's biggest economy after recent\ncredit outlook downgrades.\t\n Inclusion in the index should help Pretoria's borrowing\nplans for its multi-billion dollar infrastructure drive it says\nwill fuel economic growth after a 2009 recession, helping narrow\nthe budget deficit to about 3 percent of GDP by 2014 from 4.6\npercent this year.\t\n Citi said 11 of South Africa's government bonds worth $83\nbillion had met the WGBI's entry requirements for three straight\nmonths, allowing them to accede to the index later this year.\t\n \"The market value of these bonds ... represents a pro forma\nmarket weight of 0.41 percent in the WGBI,\" Citi said in a\nstatement.\t\n Government bonds briefly extended gains on the news, which\nwas widely expected after the initial announcement on the\npossible inclusion pushed yields down as much as 28 basis points\nin April.\t\n Yields on the benchmark three-year and 14-year\nbonds initially extended losses on the day to 8.5\nbasis points each before edging higher.\t\n The 2015 paper was last at 6.23 percent, down 3.5 basis\npoints on the day, while that for the 2026 issue was just half a\nbasis point lower at 8.3 percent.\t\n In April, analysts said the inclusion could trigger inflows\nof up to $9 billion as funds that track the index load up on\nSouth African debt.\t\n \"A lot of these guys have already got exposure, so it's hard\nto say what the new flows are going to be, but $6 billion to $9\nbillion is a fair range, I would say,\" a Johannesburg bond\ntrader said.\t\n \"The whole curve shifted about 6 points on the news but it's\ngone quiet since then.\"\t\n The news should give President Jacob Zuma's government cause\nto cheer after it was stung by Moody's, Fitch and SP's\ndowngrading of South Africa's credit rating outlook to negative\nfrom stable over concerns about the predictability of policy.\t\n \"The inclusion will, without doubt, enhance South Africa's\nprofile in the eyes of investors, both internationally and\nlocally,\" the Treasury said in a statement.\t\n \t\n SOUTH AFRICAN GOVERNMENT BONDS TO BE INCLUDED IN WGBI\t\n Bond Maturity Coupon % Latest yield%\n R206 Jan 15 2014 7.5 5.3\n R201 Dec 21 2014 8.75 5.37\n R157 Sep 15 2015 13.5 6.27\n R203 Sep 15 2017 8.25 6.865 \n R204 Dec 21 2018 8.0 7.2\n R207 Jan 15 2020 7.25 7.2\n R208 Mar 31 2021 6.75 7.64 \n R186 Dec 21 2026 10.5 8.315\n R213 Feb 28 2031 8.0 8.775\n R209 Mar 31 2036 6.25 8.895 \n R214 Feb 28 2041 6.5 8.93\n \t\n (Reporting by Stella Mapenzauswa)<\/pre>\n