Tech Stock Sell-Off: This Could Be the Most Powerful Reason to Buy Bonds Right Now

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Why SA Investors Should Consider Bonds Amid Tech Turmoil

A sharp tech sell-off is reviving bonds’ appeal as a portfolio stabilizer, especially in rand terms.

October’s 6.5% global tech sell-off pushed bond yields above 5%, signaling a rare bounce in fixed income’s defensive role. On the JSE, this shift matters as tech-heavy names like Naspers and Prosus have been under pressure. Their weakness drags the rand, making bonds more attractive locally too. Unlike 2022, when stocks and bonds both suffered, we see Treasury bonds acting as a genuine safe haven now, with prices rising as tech falls. That suggests rand-denominated bonds and high-quality offshore bonds could shield portfolios during the next risk-off phase. Standard Bank, FirstRand, and Nedbank bonds, for example, offer yield pickup with less volatility than equities. But if global inflation spikes unexpectedly or central banks pivot hawkishly again, bond prices could still fall. Still, given South African market volatility and rand moves, bonds deserve a closer look to balance Naspers and Prosus swings. this is just our opinion and not financial advice