{"id":12188,"date":"2012-07-07T00:16:22","date_gmt":"2012-07-06T22:16:22","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/s-africa-bond-ylds-hit-new-lows-but-political-risk-looms\/"},"modified":"2012-07-07T00:16:22","modified_gmt":"2012-07-06T22:16:22","slug":"s-africa-bond-ylds-hit-new-lows-but-political-risk-looms","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bond-ylds-hit-new-lows-but-political-risk-looms\/","title":{"rendered":"S.Africa bond ylds hit new lows but political risk looms"},"content":{"rendered":"

\t\t<\/span><\/p>\n

By Xola Potelwa<\/span><\/p>\n

<\/span><\/p>\n

JOHANNESBURG, July 6<\/span> (Reuters) – South African bond yields
\nhit record lows this week as foreigners piled into emerging
\nmarket debt but they are looking vulnerable to a sudden reversal
\namid fears ratings agencies may downgrade the continent’s
\nbiggest sovereign.<\/p>\n

<\/span><\/p>\n

The trigger for the market turning looks likely to come from
\npolicy uncertainty caused by behind-the-scenes political
\nposturing ahead of an internal election in the ruling ANC in
\nDecember, analysts said.<\/p>\n

<\/span><\/p>\n

Mining policy – the subject of much debate after a major ANC
\nconference last week – is under particular scrutiny, and local
\ndealers say they are preparing for a stampede for the exit by
\nthe 50 billion rand, $6.2 billion, of foreign cash that has
\nsloshed into the bond market so far this year.<\/p>\n

<\/span><\/p>\n

“The door won’t be big enough,” one Johannesburg-based
\ndealer said.<\/p>\n

<\/span><\/p>\n

Although growth in the mining sector has not kept pace with
\nthe rest of the economy since the end of apartheid in 1994, it
\nstill accounts for 8 percent of output, and the government has
\nidentified it as vital to creating jobs.<\/p>\n

<\/span><\/p>\n

“The lack of clarity with regards to future policies in key
\neconomic areas – and the mining sector is a key area of South
\nAfrican economy – at the moment is certainly something that
\nweighs negatively on the rating,” said Konrad Reuss, Sub-Saharan
\nAfrica managing director of Standard Poor’s.<\/p>\n

<\/span><\/p>\n

Despite such concerns, yield-chasing foreign cash has
\ncontinued to come into South Africa, with inflows so far this
\nyear up 60 percent on the same period in 2011.<\/p>\n

<\/span><\/p>\n

The 2015 and 2021 bonds, the most
\npopular debt last month, hit fresh record highs in the last two
\ndays, pushing yields to 5.91 and 7.07 percent respectively, and
\nlook set to go lower as expectations of interest rate cuts rise.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Xola Potelwa JOHANNESBURG, July 6 (Reuters) – South African bond yields hit record lows this week as foreigners piled into emerging market debt but they are looking vulnerable to a sudden reversal amid fears ratings agencies may downgrade the continent’s biggest sovereign. The trigger for the market turning looks likely to come from policy […]<\/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-12188","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\/12188","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=12188"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12188\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}