S&P reprieve supports resurgence in South African bonds

* South African bonds boosted after S&P keep rating steady

* Bond should extend rally on Ramaphosa reform hopes

* No threat of “taper tantrum” repeat

By Mfuneko Toyana

JOHANNESBURG, May 28 (Reuters) – During the so-called “taper tantrum” in 2013, South Africa’s 10-year bond yield added 200 basis points; similar market conditions this year have seen yields move in the opposite direction, with political stability trumping shaky economic fundamentals. Since business-friendly Cyril Ramaphosa became head of the ruling ANC in mid-November, the yield on the 2026 government bond has fallen 110 basis points, weathering a heavy emerging market sell-off and a dollar-driven liquidity crunch.

On Monday, it inched lower once more after S&P Global Ratings kept its rating unchanged at sub-investment…

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