Author: Colleen Goko and Mpho Hlakudi

(Darren Stewart/Gallo Images) One influential opinion poll changed the game for South African bond investors, easing election anxiety. The 26 April Ipsos poll alleviated concerns of a potential unpredictable coalition government, prompting Citigroup strategists to turn positive and overweight on the debt. South African local currency bonds had been lagging behind emerging markets until the poll. Since then, the debt has outperformed all developing nations (excluding Argentina) tracked by Bloomberg, delivering returns of 5.5% in dollar terms compared to an average of 0.8% over the same period. Stay informed about the latest news in South Africa to help shape a…

(Darren Stewart/Gallo Images) Recent opinion polls have brought relief to South African bond investors, easing anxiety about the upcoming election. A poll conducted by Ipsos on 26 April served as a turning point, reassuring investors worried about potential outcomes that could lead to a volatile coalition government. In response to the poll, Citigroup strategists have become optimistic, increasing their investment in South African debt. Despite trailing behind other emerging markets earlier in the year, South African local currency bonds have surged ahead following the poll results. Since then, the country’s debt has outperformed all developing nations except Argentina, with investors…