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The rand and South African bonds extended declines as foreign investors sold local notes after government forecasts for higher public debt and wider deficits over the next three years. Offshore investors sold 5.13 billion rand of bonds on Wednesday, the most in six years, and the 10-year yield rose to a 16-month high, while stocks hit a record on rand-hedge gains.
Fiscal deterioration and capital outflows weaken the rand, which raises the local cost of imported feed inputs. The impact on global grain and protein prices is small, but it affects South African feed margins.
bloomberg.comColleen Goko-Petzer, Neo Khanyile, Thembisile DzonziOct 26, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
