South Africa’s New Government Sparks Rush Into Local Bonds
- Foreign demand year-to-date has outstripped total for 2023
- Yields on government bonds have dropped to 17-month lows
Lesetja Kganyago, governor of South Africa’s central bank.
Photographer: Waldo Swiegers/BloombergDemand for South African local-currency bonds is surging, driven by optimism around the country’s new broad coalition government and prospects for interest-rate cuts as inflation moderates.
Barely half way through the year, net purchases of the debt by foreigners have already surpassed the total for all of 2023. Demand has taken off since the African National Congress invited rival parties to help rule the country after losing its parliamentary majority in the May 29 election.