South Africa Bond Auction Demand Soars as Budget Path Clears

An auction of South African government bonds attracted the strongest demand in almost three months as investors bet the country’s improving outlook and a lower inflation target will boost returns on fixed-income securities.

Primary dealers placed orders for 17.86 billion rand ($1 billion) for the 3.75 billion rand of securities on offer at the weekly Treasury auction. That compares with 12.59 billion rand of bids at last week’s sale, and is the strongest demand since the auction of March 11.