World-Beating Rand Bonds Get Leg Up From Ramaphosa Budget
- Morgan Stanley says rally not over as country tackles debt
- Budget convinced investors nation will avoid junk status
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There’s still time to get into the year’s best bond trade.
That’s provided South Africa’s central bank lives up to market expectations and cuts interest rates, according to Morgan Stanley. The government’s rand debt has already made investors a total return of 13.9 percent in dollars in 2018, more than double the gain for Mexican peso bonds, which are the second best among 19 major emerging markets tracked by Bloomberg.