{"id":15181,"date":"2012-10-03T05:26:49","date_gmt":"2012-10-03T03:26:49","guid":{"rendered":"http:\/\/www.myza.co.za\/10\/s-africa-bonds-see-delayed-impact-of-index-entry\/"},"modified":"2012-10-03T05:26:49","modified_gmt":"2012-10-03T03:26:49","slug":"s-africa-bonds-see-delayed-impact-of-index-entry","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bonds-see-delayed-impact-of-index-entry\/","title":{"rendered":"S.Africa bonds see delayed impact of index entry"},"content":{"rendered":"

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

JOHANNESBURG<\/span> Oct 2 (Reuters) – South African government
\nbonds rose on Tuesday in a somewhat delayed reaction to the
\ncountry’s inclusion in Citi’s World Government Bond Index, which
\nanalysts had predicted would lead to enthusiastic foreign
\nbuying.<\/span><\/p>\n

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

The yield on the 2015 bond fell 9 basis points to
\n5.37 percent, while that on the 14-year paper dropped
\n5 basis points to 7.51 percent.<\/p>\n

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

After declining in the months leading up to the WGBI entry,
\nbond yields edged up on Monday, the first day of inclusion, as
\nlast week’s downgrade of South Africa’s government bond rating
\nby Moody’s and poor economic data dampened sentiment.<\/p>\n

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

Moody’s cited worries about the country’s institutions and
\nits future political stability as drivers behind its decision to
\ncut the rating by one notch to Baa1 from A3.<\/p>\n

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

Data released on Friday also showed South Africa’s trade
\ndeficit widened to 12.2 billion rand in August, compared with a
\n6.7 billion rand shortfall in July.<\/p>\n

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

“Those together pretty much negated the positive influence
\nthat the WGBI had,” said Jonathan Myerson, head of fixed income
\nat Cadiz Asset Management.<\/p>\n

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

However, Myerson said he expected the inclusion to support
\nthe market over the long term.<\/p>\n

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

“Previously, when foreigners bought our bonds we were almost
\nvery nervous that the more they buy, the more they can sell,” he
\nsaid. “The inclusion should provide some move towards increasing
\nstability in local yields.”<\/p>\n

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

Africa’s biggest economy became the 23rd country to join the
\nWGBI on Monday when 12 government bonds entered the index, which
\nis tracked by funds with an estimated $2 trillion in assets
\nunder management.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

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

JOHANNESBURG Oct 2 (Reuters) – South African government bonds rose on Tuesday in a somewhat delayed reaction to the country’s inclusion in Citi’s World Government Bond Index, which analysts had predicted would lead to enthusiastic foreign buying. The yield on the 2015 bond fell 9 basis points to 5.37 percent, while that on the 14-year […]<\/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-15181","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\/15181","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=15181"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/15181\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=15181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=15181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=15181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}