By S’thembile Cele
The rally in South African bonds is set to gain further impetus when Finance Minister Enoch Godongwana unveils his budget later this month, according to analysts at Morgan Stanley.
They expect him to deliver continued fiscal consolidation when he presents the budget to lawmakers in Cape Town on 25 February, reassuring investors and further compressing the risk premium they demand for holding the nation’s sovereign debt.
“This could be one of the most bullish budget documents prepared by National Treasury in many a year,” the analysts wrote in a note to clients.
They described the possibility of revenue projections being revised higher, putting the country “in a position of dramatically improving fiscal balances”.
South African assets have rallied strongly in recent months, with yields on the benchmark 10-year government bond declining more than 300 basis points to around 8% from an April 2025 peak.
Part of that’s been
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