Although markets have, to some extent, priced in the lift-off by the Fed, there remains considerable uncertainty regarding the timing and extent thereof. South African markets and global monetary policy normalisation As financial markets and systems became more integrated in recent years, the monetary policy cycles of major economies also became increasingly important for emerging-market economies.
However, in terms of the global bond index, which world bond investors refer to when making investment judgments, the share of JGBs is the second largest next to that of US government bonds. If the current budget situation of the two countries remains unchanged for some time, it is possible that the share of JGBs will become comparable to that of US Treasuries.