The reversal in the investment trend on the Bond Exchange was, however, sufficient to change drastically the outlook for the South African economy, and some promising economic developments in the first quarter of this year were promptly aborted. 2.
Adverse financial developments lead the downward trend in the economy The sudden switch of foreign investors’ sentiments had far-reaching effects in the South African financial markets: •  •  •  The immediate effect of the withdrawal of investment funds from the Bond Exchange was a sudden and sharp increase in the yield on long-term bonds.