A resident looks out towards the skyline of the central business district in Johannesburg, South Africa, on Tuesday, Aug. 15, 2023. The summit of BRICS leaders is scheduled to take place from Aug. 22-24 in Johannesburg, where theyll discuss whether to admit more nations to its ranks. Photographer: Michele Spatari/Bloomberg
Locked
SA’s fiscal tightrope – Yield Curve steepens amid growing concerns
The SARB raised alarm bells that there is a growing reluctance from domestic investors to continue absorbing government issuance.
By Colleen Goko
A nervy environment for global bonds is adding to investor concern about South Africa's fiscal outlook, pushing the government yield curve near its steepest in a year.
With severe power cuts eroding economic growth, a government wage increase that was higher than budgeted and tax revenue missing targets, bond investors are worried the National Treasury will have to ramp up issuance at a time when global yields are rising, drawing capital away from emerging markets.
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