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JOHANNESBURG (Reuters) - Easing bond yields, which have lowered the South Africa’s long term borrowing costs, coupled with improved tax revenues, may see the country avoid issuing a Eurobond this year.
Yields on the country’s 10 and 20 year bonds, have fallen by between 30 and 50 basis points over the last month, and by about ten times that since March.
Much of the country’s COVID-19 borrowing has been at the short-end of the bond curve. Falling long-term yields, and renewed demand for yield by foreign investors, may however tempt the country to lock-in lower rates now.
A handful of emerging market countries, like Egypt in Africa and Mexico in Latin America, have already issued Eurobonds in 2021.