Government and Eskom debt rally on ‘bond friendly’ medium-term budget
Fixed-income market welcomes improved fiscal outlook in Godongwana’s medium-term budget, while bank shares and the rand also advance
26 October 2022 - 17:47
Bonds issued by the government and Eskom rallied on Wednesday after Finance Minister Enoch Godongwana delivered a medium-term budget that outlined radically improved fiscal debt projections.
The yield on the R2030 bond, which pays an 8% coupon and matures on January 31 2030, fell 16 basis points from the previous day’s close to 10.74% at 4.51pm. Before Godongwana’s medium-term budget policy statement (MTBPS) the yield, which moves inversely to the underlying security’s price, was at 10.79%. The yield on debt due in March 2032 fell 13 basis points from the previous close to 11.29%...
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