For the first time since its launch, this sub-index closed below the 100-basis-points level, ie at 94 basis points, on 4 November. The improvement was supported by the country’s positive credit rating outlook, the performance of the rand and other sound economic fundamentals.
At these levels, South Africa compares favourably with Poland, Malaysia and Thailand, whose credit ratings are at the upper level of investment grade. On 30 November, the South African sub-index narrowed further to 92 basis points over US Treasuries.