South African bonds were a smidgen firmer in
late trade on Friday, despite uncertainty about South Africa’s looming
S&P ratings.
At 3.30pm, the R186 was bid at 9.06% from 9.09% on Thursday and the R207 at 8.29% from 8.31% previously.
S&P currently rates South Africa one notch above subinvestment grade or junk status, and has a negative outlook on the country’s economic prospects.
SA narrowly avoided downgrades by Moody’s and Fitch last week, but S&P is generally seen as the least forgiving of major credit rating agencies.
Many analysts, however, were thinking think a downgrade is unlikely, and that perception helped the bond market retain some stability. The worst fear is of a downgrade of more than one notch, which could cause a major loss of financing for the government and take SA years to recover from.
Fitch and Moody’s cited political instability as a factor in their negative views last week.
US treasuries traded weaker on Friday ahead of US nonfarm jobs figures, which proved to be in line with expectations. The US 10-year treasury was at 2.4248% from 2.449%.
by
At 3.30pm, the R186 was bid at 9.06% from 9.09% on Thursday and the R207 at 8.29% from 8.31% previously.
S&P currently rates South Africa one notch above subinvestment grade or junk status, and has a negative outlook on the country’s economic prospects.
SA narrowly avoided downgrades by Moody’s and Fitch last week, but S&P is generally seen as the least forgiving of major credit rating agencies.
Many analysts, however, were thinking think a downgrade is unlikely, and that perception helped the bond market retain some stability. The worst fear is of a downgrade of more than one notch, which could cause a major loss of financing for the government and take SA years to recover from.
Fitch and Moody’s cited political instability as a factor in their negative views last week.
US treasuries traded weaker on Friday ahead of US nonfarm jobs figures, which proved to be in line with expectations. The US 10-year treasury was at 2.4248% from 2.449%.
by
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