Property’s promising performance

May 2002

The South African government sold the first inflation-indexed long bond in March 2000. Bids ranged from 10% to 5%, and only a small amount of nearly R500 million of the R189 — maturing in 2013 — was allotted at the cut-off price of 6,5%. The second inflation-linked bond, the R197 (maturing in 2023), was issued in May 2001 and initially traded at a yield of about 5,7%.

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