South Africa’s 10-year government bond yield eased to below 8.80%, its lowest since September 22, as investors welcomed the Treasury’s medium-term budget and its renewed commitment to fiscal discipline. The budget pointed to a narrowing deficit and a stabilizing debt-to-GDP ratio, despite weaker growth. Importantly, Finance Minister Enoch Godongwana also unveiled draft legislation for public consultation to establish a principles-based fiscal anchor, which is expected to be submitted to Parliament in 2027. The proposed framework aims to prevent a repeat of the fiscal deterioration seen between the global financial crisis and the early 2020s. At the same time, the government announced a temporary reduction in the fuel levy amid elevated global oil prices.