South Africa’s government bonds weakening
South Africa's rand weakened early yesterday after the government tightened Covid-19 restrictions to cope with the speed and scale of new coronavirus infections.
President Cyril Ramaphosa announced tighter Covid-19 restrictions for 14 days saying the current containment measures were insufficient with the country, the worst-hit on the African continent in terms of recorded cases and deaths, in the grip of a "third wave" of infections.
"This scenario, although necessary, is likely to hamper an already faltering economy, and the rand is likely to remain under pressure, with any strength in the local unit likely to be met with fresh demand for USD," analysts at Nedbank wrote in a note.
Government bonds also weakened, with the yield on the instrument due in 2030 rising 4.5 basis points to 9.035%. - Nampa/Reuters
President Cyril Ramaphosa announced tighter Covid-19 restrictions for 14 days saying the current containment measures were insufficient with the country, the worst-hit on the African continent in terms of recorded cases and deaths, in the grip of a "third wave" of infections.
"This scenario, although necessary, is likely to hamper an already faltering economy, and the rand is likely to remain under pressure, with any strength in the local unit likely to be met with fresh demand for USD," analysts at Nedbank wrote in a note.
Government bonds also weakened, with the yield on the instrument due in 2030 rising 4.5 basis points to 9.035%. - Nampa/Reuters
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