Sunday, January 15, 2012


//Global debt investors favor SA bonds almost as much as "safe" US bonds. An indication of growth of SA or decline of US?

Treasury last week had no difficulty in disposing offshore of $1.5bn worth of government bonds with a 12-year maturity. The auction attracted bids worth $3bn and the bonds were sold at a 4.66% rate of return.
This rate was only 270 basis points higher than that investors receive on US government bonds with a 10-year maturity.
This means that investors require only 2.7 percentage points more in interest than that offered by US bonds – which are regarded as a safe haven – to lend the South African government money.
Henk Viljoen, head of fixed-interest investments at Stanlib, says the return is considerably lower than the rates Spain and Italy have to pay.
“As South Africans, we can pat ourselves on the back that we can now borrow at rates that compete with the yields from countries we have always looked up to.”

//US transnational company.profits funnel back to US.
//Do profits "trickle down" to help rebuild SA's infrastructure? Education?

>random correlation: WalMart entering South Africa ->query: Why could it not enter Germany?

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