SA bond yields rising to 2008 levels point to dilemma for Kganyago before policy meeting
Yields differentials fail to work in SA’s favour as markets await end of the Reserve Bank’s policy meeting later in the week
BL PREMIUM
16 March 2020 – 18:16
SA bond yields shot up to the highest level since the outbreak of the global financial crisis more than a decade ago, highlighting the risks faced by the Reserve Bank as it comes under pressure to cut interest rates.
The sell-off in bond markets pushed the generic 10-year yield, which moves inversely to the price, up 73 basis points, or 0.73 percentage points, to 10.71% late on Monday, the highest since July 2008. The rand was down 1.9% at R16.5831/$, pushing its drop for the month so far to 5.4% and 15.31% for 2020.
Source: businesslive.co.za
