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Rand, South Africa Bonds Show Investor Nerves Ahead of Budget

  • Rand, bonds in steady decline before Wednesday’s presentation
  • Investors seek clarity on Eskom debt, state worker wages
Enoch Godongwana 

Enoch Godongwana 

Photographer: Dwayne Senior/Bloomberg

South African Finance Minister Enoch Godongwana has his work cut out to calm frayed investor nerves over the country’s outlook, if rand and bond movements are anything to judge by.

As Godongwana prepares to present his medium-term budget on Wednesday, South Africa’s local-currency bonds are in retreat. They have lost 3.1% over the past week in dollar terms, compared with an average decline of 1% across emerging markets, with only Colombian debt faring worse.