South African bond paper still popular

The great finance financier of South Africa, Nhlanhla Nene, may be targeted by an investigation for its proven links with the sultry family Gupta, the country’s public debt is still sought after.

Despite uncertainties about the future of the Minister of Finance, authorized traders placed $ 7.04 billion ($ 485 million) in underwriting demand, nearly three times the 2.4 billion rand (166 million dollars) of securities offered for sale at the weekly Treasury auction held on Tuesday, according to data published by the Central Bank.

An appetite for South African bond paper confirmed by Ashley Dickinson, head of fixed income at Sasfin Wealth, for whom “the auction has been well supported in the current circumstances”. In fact, “the [South African] Treasury has placed the entire 800 million rand allowance in each of the three bonds offered and, despite an uncertain environment, the bonds have been offset to a value equal to or greater than the returns at the time of the closing of the auction “, detail the MBEA broker teams for which” investors have benefited from higher returns to increase the risks of their portfolios “.

South African yields reached their highest level in two months on Tuesday, with the bond rate maturing in 2026 climbing to 9.26%, while current uncertainties are tending to undermine the demand for emerging market assets. The main victim of this mistrust, the rand continued to lose ground against the dollar, the South African currency currently trading around 14.80 rand for one dollar.


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