SA bonds had their best day since the height of Ramaphoria on Monday, and the rand had its biggest rally in two months as investors breathed a sigh of relief after SA escaped a ratings downgrade from Moody’s Investors Service that could have seen billions of dollars flee the country.

The yield on the R186 bond due in 2026, which moves inversely to the price, dropped the most since February 2018, when Cyril Ramaphosa’s elevation to the presidency sparked a wave of confidence for an economic revival...