Weakest Bond Sale This Year Raises Flag for South Africa Debt Costs
Bloomberg 3/9/2021 Colleen Goko
(Bloomberg) South Africa’s weakest bond auction this year spells trouble for the government’s plans to reduce debt costs.
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The lowest demand since Dec. 1 raises concerns that the Treasury may struggle to finance its budget deficit in a macro environment of rising global yields and large outflows from the domestic bond market. While debt issuance is above target for this fiscal year, the government decided to keep sale amounts at current levels, reducing only the extra amount investors may buy through a non-competitive auction, further damping demand.
(Bloomberg) South Africa’s economy contracted the most in a century in 2020 as restrictions to curb the spread of the coronavirus pandemic ravaged output and disrupted trade.
Gross domestic product shrank 7%, compared with a 0.
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South Africaâs weakest bond auction this year spells trouble for the governmentâs plans to reduce debt costs.
The lowest demand since December 1 raises concerns that the Treasury may struggle to finance its budget deficit in a macro environment of rising global yields and large outflows from the domestic bond market. While debt issuance is above target for this fiscal year, the government decided to keep sale amounts at current levels, reducing only the extra amount investors may buy through a non-competitive auction, further damping demand.
Adding to tradersâ concerns was data on Tuesday that showed South Africaâs economy contracted the most in a century in 2020 as restrictions to curb the spread of the coronavirus pandemic ravaged output and disrupted trade.
Weak bond sale raises flag for South Africa debt costs businesstech.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstech.co.za Daily Mail and Mail on Sunday newspapers.
Online marketplace helps local farmers flourish gcis vuk uzenzele > By gcis vuk uzenzele - 03 March 2021 - 07:00 Zamokuhle Thwala, founder and creator of AgriCool online platform. Image: Supplied.
KwaZulu-Natal-based Zamokuhle Thwala (29) has created a digital crowdfunding platform that empowers smallholder farmers.
AgriCool is an online marketplace that links smallholder farmers and buyers to a fair and reliable market. Thwala says the platform also helps farmers secure financial assistance and gives them access to real-time information that they need to improve production.
The entrepreneur, who was once a smallholder farmer himself and knows how hard it is to secure the money needed to get started, and then to find good markets for your products.