The MTBPS delivered by the Minister of Finance disappointed bond investors, says Victor Mphaphuli, STANLIB Head of Fixed Income. In the current fiscal year, revenue collection is weaker and expenditure greater than expected, with the budget deficit seen at 5% vs 4.5% projected in February. The 10-year government bond peaked at 10.5% after the speech from 10.35% earlier, and the rand weakened by 0.9%. However, the risks to revenue collection are on the upside and there is no risk of an imminent credit downgrade.