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ANC manifesto negative for bonds?

Jan 12 2009 11:08

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Johannesburg - The ANC's weekend election manifesto could be negative for bonds, suggested Barclays Capital in a research note on Monday.

The analysts thus recommend defensive positions along the bond yield curve.

They feel that money will probably come through increased borrowing rather than higher taxes to fund the proposed programmes.

In its much-anticipated election manifesto over the weekend, the ANC outlined five priority areas for the next five years, namely, employment creation, education, health, rural development and intensifying the fight against crime and corruption.

"In terms of economic policy, the ANC indicated that the focus for SA's monetary, fiscal and exchange rate policies will be to 'actively promote creation of decent employment, economic growth, broad-based industrialisation, reduced income inequality and other developmental imperatives'," noted the Barclays Capital analysts.

- I-Net Bridge

 
 
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