SA maintains debt issuance levels

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Cape Town - South Africa will not be going to the domestic market for more money, even as the budget shortfall widens slightly, the Treasury said on Thursday.

In its Medium Term Budget Policy Statement presented on Thursday, Treasury said it would continue to issue debt at current levels, which is at about R3 billion ($342.5 million) a week.

The long end of the government yield curve had steepened over the last week in anticipation of extra issuance to help fund the budget shortfall.

Some market players were anticipating Treasury would also announce a switch programme to reduce its 2015 payments.

However, Treasury said it would stick with its current switching programme, where it exchanges bonds maturing in 2014 for longer dated paper to manage the redemptions. - Reuters

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