SA dollar bonds fall as data shows economy in recession

South African sovereign dollar bonds sold off across the curve on Tuesday, mirroring falls for local-currency debt and the rand after data showed the economy in recession for the first time since 2009.

The maturing 2041 bond dropped 1.9 cents to a 2-1/2 month low, according to Tradeweb, while the 2044 issue lost 1.6 cents to reach the lowest level since Jan. 2018 .

Data showed the South African economy contracted by 0.7% in the second quarter, bucking expectations of a 0.6% expansion.

The rand lost more than 2% against the dollar and local currency government bond yields rose 17 basis points