(Bloomberg) -- The premium investors demand to own South African rand bonds over U.S. Treasuries is rising again as the African National Congress enters the final days of a bruising leadership contest. After narrowing from a 15-year high in 2016, the spread climbed to more than a percentage point above the 10-year average this week. While slowing inflation may support South African bonds in coming months, political risks would have to subside to bring the spread back toward the mean, according to Standard Bank Group Ltd.
To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net.
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Natasha Doff
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