Treasury trims issuance as revised borrowing projections ease supply pressures in bond markets.
South Africa’s National Treasury South Africa will reduce weekly sales of competitive fixed-rate government bonds by 450 million rand, bringing total issuance to 2.55 billion rand. Inflation-linked bond sales remain unchanged at 1 billion rand.
The move follows a downward revision of the 2025/26 gross borrowing requirement to 563.4 billion rand from 588.2 billion rand in the national budget. Officials cited a stronger cash buffer and increased use of bond switch auctions to manage refinancing risks.
Market reaction was positive. South Africa’s benchmark bond yield fell to 7.83%, while the rand strengthened against the dollar.
Treasury also plans to raise about $13.2 billion from multilateral institutions and global capital markets, after successfully issuing $3.5 billion in December 2025. Infrastructure-linked bond issuance is expected to expand as government prioritises long-term development financing.
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