{"id":422616,"date":"2020-08-04T13:34:05","date_gmt":"2020-08-04T11:34:05","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=422616"},"modified":"2020-08-04T13:34:05","modified_gmt":"2020-08-04T11:34:05","slug":"foreign-investors-lose-interest-in-south-african-bonds","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/422616\/foreign-investors-lose-interest-in-south-african-bonds\/","title":{"rendered":"Foreign investors lose interest in South African bonds"},"content":{"rendered":"

Foreign investors continued to desert South Africa\u2019s bond market in July, with their share of government debt falling to the lowest level in more than eight years.<\/p>\n

Non-resident bond holdings fell to 30.1% as of 31 July, from 30.6% the previous month and as high as 37.3% in January, according to National Treasury data. Foreigners have sold a net R54 billion ($3.1 billion) of the debt this year, JSE Ltd. data show.<\/p>\n

South Africa lost its last investment-grade credit rating in March, when Moody\u2019s Investors Service cut its assessment to Ba1 from Baa3.<\/p>\n

S&P Global Ratings and Fitch Ratings downgraded the country deeper into junk. The bonds exited indexes tracking investment-rated debt, sparking forced sales by funds benchmarked against those.<\/p>\n

\"\"<\/a><\/p>\n

\u201cThe continuous downgrades by all three ratings agencies seem to be having the effect of taking South Africa off the radar for many offshore investors despite the attractive yields\u00a0on offer<\/span>,\u201d said Deon Kohlmeyer, a Johannesburg-based trader at Rand Merchant Bank.<\/p>\n

\u201cIt remains to be seen whether local investors can take up the issuance slack created by the reduction in offshore investor interest.\u201d<\/p>\n

Yields on government bonds are among the highest in emerging markets, with benchmark 10-year debt offering a pickup of 8.78 percentage points over US Treasuries.<\/p>\n

The 10-year yield rose 4 basis points on Tuesday at 9.31%. It\u2019s climbed 67 basis points since the beginning of June.<\/p>\n

\n

Read: More job cuts and investments lost due to South Africa\u2019s alcohol ban<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Foreign investors continue to desert South Africa\u2019s bond market in July, with their share of government debt falling to the lowest level in more than eight years.<\/p>\n","protected":false},"author":59,"featured_media":290474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-422616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=422616"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422616\/revisions"}],"predecessor-version":[{"id":422628,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422616\/revisions\/422628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/290474"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=422616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=422616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=422616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}