Market Update: What the US Bond Sell-Off Means for South African Investors
US Treasury yields hit their highest levels since 2007 in August, highlighting that investors are losing their patience with the US’s mounting government debt exposure and failure to bring inflation down to its target.
Usually, the US’s woes become South Africa’s. But remarkably, domestic assets haven’t been caught up in the sell-off so far. The attractive carry trade is holding up the bond market and strengthening the rand. The question is how long the good times can last.
