The rand had its biggest drop in nearly 14 months and bonds slumped after finance minister Tito Mboweni unveiled a medium-term budget policy statement (MTBPS) that laid bare the costs to the country of Eskom’s bailouts.

The rand dropped 2.59% on Wednesday, its biggest fall since September 2018, pushing it through the R15/$ level for the first time since October 10. Yields on the country’s 10-year bond yields, which move inversely to the price, increased to the highest in more than two months as some analysts said the budget made a Moody’s Investors Service change to the country’s rating outlook from stable to negative all but inevitable.

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