Deutsche Bank strategists argue that foreign bond investors are overpricing the long-term risks associated with South Africa, as evidenced by the steepening yield curve. Foreign holdings in South African government bonds have declined to around 26% as of July 2023, near the lowest levels since 2011. A recent debt auction showed reduced demand, particularly for notes due in 2048, which had a bid-to-cover ratio of 1.6 and saw yields increase by 12 bps.