Bond yields keep rising before budget, but debt path counters global liquidity

SA bond yields are ticking up ahead of finance minister Tito Mboweni’s budget on February 24 as concern about the country’s long-term debt trajectory counters positive global liquidity conditions that have pushed the rand to well below R15/$.

Moody’s Investors Service warned earlier this week that SA’s fiscal challenges could cause debt levels to breach 100% of GDP as early as the 2022 budget. The ratings agency, which has SA on a negative outlook, said it is likely to downgrade the country further if debt pressures worsened faster and lasted longer than it is forecasting…

Source: businesslive.co.za