{"id":15173,"date":"2012-10-02T17:27:07","date_gmt":"2012-10-02T15:27:07","guid":{"rendered":"http:\/\/www.myza.co.za\/10\/update-1-level-of-bond-flows-to-s-africa-unsustainable-marcus\/"},"modified":"2012-10-02T17:27:07","modified_gmt":"2012-10-02T15:27:07","slug":"update-1-level-of-bond-flows-to-s-africa-unsustainable-marcus","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-level-of-bond-flows-to-s-africa-unsustainable-marcus\/","title":{"rendered":"UPDATE 1-Level of bond flows to S.Africa unsustainable-Marcus"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Marcus says WGBI inclusion boosting bonds<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Weak global outlook weighs on domestic growth<\/p>\n<p><span><\/span><\/p>\n<p>* Central bank does not target rand exchange rate<\/p>\n<p> (Adds details, background)<\/p>\n<p><span><\/span><\/p>\n<p>JOHANNESBURG, Oct 2 (Reuters) &#8211; The current levels of<br \/>\nforeign flows into South Africa&#8217;s bond market are not<br \/>\nsustainable although demand should continue for some time,<br \/>\nboosted by inclusion in Citi&#8217;s World Government Bond Index,<br \/>\nReserve Bank Governor Gill Marcus said on Tuesday.<\/p>\n<p><span><\/span><\/p>\n<p>Speaking to a meeting of the Nordic-South African Business<br \/>\nAssociation, Marcus also reiterated her stance that the central<br \/>\nbank did not target a exchange rate for the rand or the level of<br \/>\nforeign currency reserves because of the cost of doing so.<\/p>\n<p><span><\/span><\/p>\n<p>Africa&#8217;s biggest economy had seen about 84 billion rand<br \/>\n($10.10 billion) of bond purchases by foreign accounts since the<br \/>\nstart of the year, driven partly by demand linked to the WGBI<br \/>\ninclusion, Marcus said.<\/p>\n<p><span><\/span><\/p>\n<p>Twelve government bonds debuted on the index on Monday,<br \/>\nputting South Africa alongside 22 other countries on the WGBI,<br \/>\nwhich is tracked by funds worth an estimated $2 trillion.<\/p>\n<p><span><\/span><\/p>\n<p>Local bonds have rallied in the months leading to the<br \/>\ninclusion, and on Tuesday yields on the heavily traded three<br \/>\nyear and 14-year paper were down as much as nine basis<br \/>\npoints from overnight levels.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;I don&#8217;t think (inflows) can be sustained at these levels<br \/>\nbut the expectation is that over the foreseeable future you&#8217;re<br \/>\ngoing to have inflows,&#8221; Marcus said.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Marcus says WGBI inclusion boosting bonds * Weak global outlook weighs on domestic growth * Central bank does not target rand exchange rate (Adds details, background) JOHANNESBURG, Oct 2 (Reuters) &#8211; The current levels of foreign flows into South Africa&#8217;s bond market are not sustainable although demand should continue for some time, boosted by [&hellip;]<\/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-15173","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\/15173","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=15173"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/15173\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=15173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=15173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=15173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}