South Africa’s rand scaled a 13-month peak and bonds rallied on Wednesday after the Treasury published the details of its budget to parliament, including additional Covid-support and vaccine funding while sticking to its previous growth forecast.
The rand strengthened as much as 1% versus the dollar to R14.39, levels last seen in January 2020, Refinitiv data showed.
Ten-year local government bond yields rallied to an eight day low of 8.545%, while some sovereign dollar bonds gained more than 2 cents, according to Tradeweb data.
“Hitting all the right notes and more,” said Deutsche Bank’s Danelee Masia.
“This should be positive ZAR and markets,” Masia said, adding tax collections of around R99 billion ($6.87 billion) in the financial year 2020/2021 had outstripped expectations.