LONDON, April 3 (Reuters) - Yields on South Africa’s sovereign dollar-bonds rose across the curve on Monday after S&P Global Ratings cut the country’s sovereign credit rating to ‘junk’, citing fiscal policy risk following the sacking of finance minister Pravin Gordhan.
The yield on the country’s benchmark 2026 issue jumped 9 basis points to 4.908 percent, according to Tradeweb data.
The cost of insuring South African government debt against default, five-year credit default swaps, jumped 2 basis points to 222 bps from Friday’s close of 219 bps, according to data provider IHS Markit.
S&P reduced the credit rating to BB+ from BBB- and assigned a negative outlook. (Reporting by Karin Strohecker, edited by Mike Dolan)