Prescient favors South African bonds as real yields exceed 4%
TLT•Prescient Management favors South African cash and bonds entering the fourth quarter of 2026, citing 10-year real yields above 4% and real cash rates above 2.5%. It is underweight developed and emerging market equities.
1. South African bonds favored
Prescient Management favors South African cash and bonds entering the fourth quarter of 2026, while keeping developed and emerging market equities underweight. South African 10-year real yields exceed 4%, and real cash rates are above 2.5%.
2. Equity and US bond views
The firm says elevated valuations underpin negative global equity signals, while South African equities retain a moderately positive rating based on valuation discounts and currency support. It says US Treasury repricing reflects higher expected real rates rather than unanchored inflation expectations, and favors short-dated bonds over the neutral long end. Equity exposure remains capitalization-weighted without caps; the firm seeks excess returns through fixed income rather than reducing index concentration.
