Locals on Sidelines as Foreigners Reap S. Africa Debt Reward
- Yields on bonds are highest among investment-rated countries
- Local pension funds hold least government debt since 2013
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South Africa is looking better from the outside than the inside, judging by the behavior of bond investors.
Foreign holdings of South African government securities are at the highest in two years, with inflows of 62 billion rand ($4.5 billion) this year, compared with 6 billion rand in the corresponding period last year. By contrast, domestic pension funds, historically the biggest investors in government debt, in August reduced their stock to the lowest since May 2013, according to National Treasury data.