South Africa Sells 7-Year Bonds at Lowest Yield Since January

South Africa sold seven-year bonds at the lowest yield since January amid signs a weak economic recovery may allow the central bank to hold borrowing costs at a 30-year low this year.

The Reserve Bank sold 1.3 billion rand of the 8 percent securities maturing in 2018 at an average yield of 8.38 percent at its weekly auction, the lowest yield since the auction on Jan. 14. Investors bid for 1.91 times the amount on offer, the Pretoria-based central bank said on its Bloomberg page. The bank also auctioned 800 million rand of 10.5 percent notes due 2026 at an average yield of 8.67 percent, the lowest since the auction on Feb. 18, with investors bidding for 4.09 times the amount on offer.