* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, August 22, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    What Are Our Predictions for Taylor Swift’s ‘Life of a Showgirl’ Based on What She’s Told Us So Far? – yahoo.com

    Uncover the Hidden Surprises in Taylor Swift’s ‘Life of a Showgirl’ – Can You Decode Her Clues?

    Bama Dining Serving Up New Food, Entertainment – UA News Center

    Bama Dining Launches Thrilling New Food and Entertainment Experiences

    The latest on Williams-Brice Stadium renovations, entertainment district – On3

    Discover the Thrilling New Upgrades Coming to Williams-Brice Stadium and Its Vibrant Entertainment District!

    1000+ Entertainment Leaders Release Open Letter Criticizing TIFF’s Handling of Film – Creative Community for Peace

    1000+ Entertainment Leaders Release Open Letter Criticizing TIFF’s Handling of Film – Creative Community for Peace

    ‘The Lucky Ones’: Mae Ngai Sells Film & TV Rights To Neurosphere Entertainment – Deadline

    The Lucky Ones’: Mae Ngai Lands Thrilling Deal for Film and TV Adaptations

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Teaching older adults how to use technology – WWNY

    Empowering Older Adults to Master Technology with Confidence

    Denver man receives pacemaker using new technology – CBS News

    Denver Man’s Life Transformed by Revolutionary Pacemaker Technology

    Morgan County Rescue Squad is using new technology to recover people missing in the water faster – WAFF

    Morgan County Rescue Squad is using new technology to recover people missing in the water faster – WAFF

    YSU to celebrate launch of new radiology technology program – WKBN.com

    YSU Launches Exciting New Radiology Technology Program Celebration

    Thaddeus Stevens College of Technology kicks off return to school for Lancaster County colleges [photos] – LancasterOnline

    Thaddeus Stevens College of Technology Kicks Off an Exciting New School Year for Lancaster County Colleges [Photos]

    Empyrean Technology’s revenue climbs, but profit plunges 92% in EDA spending squeeze – digitimes

    Empyrean Technology’s Revenue Skyrockets as Profits Plunge 92% Amid EDA Spending Crunch

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    FOX One is now available on Prime Video: Here’s everything to know – About Amazon

    What Are Our Predictions for Taylor Swift’s ‘Life of a Showgirl’ Based on What She’s Told Us So Far? – yahoo.com

    Uncover the Hidden Surprises in Taylor Swift’s ‘Life of a Showgirl’ – Can You Decode Her Clues?

    Bama Dining Serving Up New Food, Entertainment – UA News Center

    Bama Dining Launches Thrilling New Food and Entertainment Experiences

    The latest on Williams-Brice Stadium renovations, entertainment district – On3

    Discover the Thrilling New Upgrades Coming to Williams-Brice Stadium and Its Vibrant Entertainment District!

    1000+ Entertainment Leaders Release Open Letter Criticizing TIFF’s Handling of Film – Creative Community for Peace

    1000+ Entertainment Leaders Release Open Letter Criticizing TIFF’s Handling of Film – Creative Community for Peace

    ‘The Lucky Ones’: Mae Ngai Sells Film & TV Rights To Neurosphere Entertainment – Deadline

    The Lucky Ones’: Mae Ngai Lands Thrilling Deal for Film and TV Adaptations

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Teaching older adults how to use technology – WWNY

    Empowering Older Adults to Master Technology with Confidence

    Denver man receives pacemaker using new technology – CBS News

    Denver Man’s Life Transformed by Revolutionary Pacemaker Technology

    Morgan County Rescue Squad is using new technology to recover people missing in the water faster – WAFF

    Morgan County Rescue Squad is using new technology to recover people missing in the water faster – WAFF

    YSU to celebrate launch of new radiology technology program – WKBN.com

    YSU Launches Exciting New Radiology Technology Program Celebration

    Thaddeus Stevens College of Technology kicks off return to school for Lancaster County colleges [photos] – LancasterOnline

    Thaddeus Stevens College of Technology Kicks Off an Exciting New School Year for Lancaster County Colleges [Photos]

    Empyrean Technology’s revenue climbs, but profit plunges 92% in EDA spending squeeze – digitimes

    Empyrean Technology’s Revenue Skyrockets as Profits Plunge 92% Amid EDA Spending Crunch

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

South African bonds lead global returns amid political stability

July 28, 2024
in Business
South African bonds lead global returns amid political stability
Share on FacebookShare on Twitter

South Africa’s local-currency bonds have outperformed global peers, returning 9.3% in dollar terms this year. The success is driven by political stability post-election, improved fiscal outlook, and a halt in power cuts. Investors are optimistic, with yields expected to fall further. High interest rates and positive inflation trends bolster the appeal, drawing significant foreign investment. Local demand remains strong, signalling continued bullishness for South African bonds.

Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.

Join us for BizNews’ first investment-focused conference on Thursday, 12 September, in Hermanus, featuring top experts like Frans Cronje, Piet Viljoen, and more. Get insights on electricity and exploiting SA’s gas bounty from new and familiar faces. Register here.

By Colleen Goko

The outlook for emerging-market local-currency bonds is less than rosy — except in South Africa, which has delivered world-beating returns this year and is seen extending that run.

Developing-nation local debt has struggled amid pressures from higher-for-longer US interest rates and geopolitical risks. Strategists at Goldman Sachs Group Inc. said they’re “leaning defensive” on the asset class due to the volatility the US election may bring.

But in South Africa, investors are leaning in. The bonds have already returned 9.3% in dollar terms this year, more than any other local-currency sovereign debt. The average return for emerging markets was just 0.1%.

South Africa’s general election was the catalyst. Even before the May 29 vote, investors began loading up on the bonds anticipating that a market-friendly government would emerge — and it did.

The yield on benchmark 2035 rand securities has dropped about 140 basis points since the poll to around 11%. It’s set to fall to 10.88% by year-end, and 10.49% by the end of 2025, according to the median forecast in a Bloomberg survey.

“Post the elections there is a lower risk premium paired with an improving fiscal story, albeit slowly,” said Thierry Larose, a Zurich-based portfolio manager at Vontobel Asset Management.

It’s not only the brightening political situation that’s driving bond gains. 

South Africa has gone more than 100 days without power cuts after record blackouts last year that crippled the economy. A plan to use gold and foreign exchange reserves to cut the budget deficit has lowered the government’s debt-service costs and improved the fiscal outlook.

Lesetja Kganyago, governor of South Africa’s central bank, at an interest rates news conference in Centurion, South Africa, on May 30.

With local asset managers mostly at or close to prudential limits on investing offshore, there is potential for capital to flow back onshore as the fundamentals improve, according to Larose. South Africa’s yields remain among the highest in emerging markets, offering juicy returns for investors anticipating lower developed-nation rates in the months ahead.

“Rates are relatively high by global EM standards, and the curve is quite steep,” he said. “Of course, this is due to the deterioration in the credit and risk premia built into the curve, but everything has a price, and the carry and rolldown are still attractive despite the post-election rally.”

Inflation and monetary policy are also moving in the right direction. A measure of South African inflation expectations has dropped to the central bank’s target point of 4.5%, reinforcing bets for a policy easing cycle to begin in September. Forward-rate agreements that capture the September meeting show that traders are fully pricing in a quarter-point cut.

Foreign investors have been net buyers of the nation’s debt to the tune of 23.4 billion rand ($1.3 billion) this year — on track for the largest annual inflow since 2019, based on data reported by exchange operator JSE Ltd.

Demand at South Africa’s government bond auctions has remained strong. The weekly sale on Tuesday drew 18.5 billion rand of orders, nearly five times the 3.75 billion rand of securities on offer, according to data published by the central bank.

“I am bullish on South African local-currency debt for the rest of the year,” said Eimear Daly, an emerging-market macro strategist at NatWest Markets. “Clarity over the domestic political situation has provided the needed trigger for investors to re-engage.”

Read also:

Risk premium on SA bonds is too high, top investor says
RMB Morgan Stanley predicts 18% gains for SA stocks, beating bonds and cash
South African markets suffer amid Cabinet delay concerns

© 2024 Bloomberg L.P.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BizNews – https://www.biznews.com/sa-investing/2024/07/26/sa-bonds-lead-global-returns

Tags: AfricanbusinessSouth
Previous Post

Ice Spice Twerks As Lady Liberty In “Oh Shhh…” Music Video Feat. Travis Scott

Next Post

Alert : Casper Network Became Victim to a Crypto Hack!

Oli Adams: The Best Surfer In the World (Without a Large Intestine) – SURFER Magazine

Oli Adams: The World’s Top Surfer Defying All Odds Without a Large Intestine

August 22, 2025
FOX One is now available on Prime Video: Here’s everything to know – About Amazon

FOX One is now available on Prime Video: Here’s everything to know – About Amazon

August 22, 2025
St. Dominic Health celebrates heart patients with Heart Recovery Reunion – WLBT

St. Dominic Health Celebrates Heart Patients in a Joyful Recovery Reunion

August 22, 2025
WATCH: Trump speaks with police and troops patrolling Washington, DC – PBS

Watch Trump Engage with Police and Troops Patrolling Washington, DC

August 22, 2025

Self-directed and prosocial wound care, snare removal, and hygiene behaviors amongst the Budongo chimpanzees – Frontiers

August 21, 2025
Science to screenings to symphonies: What’s happening on Thursday? – Audacy

From Science Talks to Symphony Nights: Don’t Miss These Exciting Events This Thursday!

August 21, 2025
McPherson College Offers New Degree in Exercise Science – Ad Astra Radio

McPherson College Unveils Thrilling New Degree Program in Exercise Science

August 21, 2025
Fly Cathay Pacific and Witness Unique and Award-Winning Cabin Lifestyle in Business Class – autoevolution

Experience Award-Winning Luxury and Unique Comfort in Cathay Pacific Business Class

August 21, 2025
Teaching older adults how to use technology – WWNY

Empowering Older Adults to Master Technology with Confidence

August 21, 2025
Ballers: The 38 Top Sports Agents and Managers in Hollywood – The Hollywood Reporter

Ballers: The 38 Top Sports Agents and Managers in Hollywood – The Hollywood Reporter

August 21, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (783)
  • Economy (804)
  • Entertainment (21,683)
  • General (16,602)
  • Health (9,844)
  • Lifestyle (816)
  • News (22,149)
  • People (805)
  • Politics (813)
  • Science (16,016)
  • Sports (21,302)
  • Technology (15,784)
  • World (785)

Recent News

Oli Adams: The Best Surfer In the World (Without a Large Intestine) – SURFER Magazine

Oli Adams: The World’s Top Surfer Defying All Odds Without a Large Intestine

August 22, 2025
FOX One is now available on Prime Video: Here’s everything to know – About Amazon

FOX One is now available on Prime Video: Here’s everything to know – About Amazon

August 22, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version