Scary warning signs from the SA bond market

While the equity market gets most of the media attention, the bond market is a much better barometer of the state of the real economy. The South African bond market has been through a tumultuous period. After the Moody’s downgrade in March, SA government bond yields spiked, but they have since fallen back to near-normal levels despite massive growth in borrowing. What signals is the bond market sending and what does it all mean for interest rates, inflation, and ordinary South Africans? In this episode, featuring content from the Bloomberg P&L podcast, we delve into these issues in depth. - Felicity Duncan