A quarterly overview of the movement of capital market yields, prices and returns and of bond market yield spreads. Returns on bonds are shown in comparison with equity and cash returns. Recent bond trading statistics are provided along with a breakdown of the issuers and ownership of South African bonds.
14 February 2022
The Covid pandemic and severe economic challenges being faced by South Africa—mostly due to inappropriate policies and inept and corrupt politicians—have seen another potentially structural yield curve shift in SA bonds, from 2-3% to 4-6%.
26 January 2021
Since peaking at more than 18% (nominal yields) in September 1998, long-term SA bond yields have declined to below 7% by May 2013.
15 November 2019
For the 12-months ended September 2019, nominal bond returns ranked first with a 10% return.
11 September 2019
Bigger counter-cyclical and infrastructure spending, SOE support and elaborate education, welfare and health systems envisaged by government over the next few years, will cause upward pressure on the state’s borrowing requirement as a ratio of GDP.
25 April 2019
S&P; and Fitch awarded junk status to SA in April 2017 following president Zuma’s cabinet reshuffles.
02 November 2018
Standard & Poor’s and Fitch awarded junk status to SA in April 2017 following president Zuma’s cabinet reshuffles.
27 July 2018
Yields moved higher during most of 2017 but have fallen sharply in early 2018 after the election of Ramaphosa as President.
15 May 2018
For the 12-months ending April 2018, bonds have outperformed other SA asset classes and was also the only asset class to have beaten inflation.
22 February 2018
Ratings agencies have gradually been downgrading SA’s sovereign risk rating since 2013.
04 August 2017
Emerging market currencies and asset classes have been under pressure since late 2013 after the US announced that it will taper and eventually end its policy of quantitative easing.
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South Africa Equity Market — May 2022 Report - 05 May 2022
