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For the first time ever, South Africa is paying more to borrow in its local currency than Nigeria, rated four steps lower at Moody’s Investors Service.

Yields on South African rand bonds have climbed more than a percentage point since the beginning of June after the government boosted issuance to plug a fiscal deficit forecast to swell to more than 15% of gross domestic product this year.

Nigerian yields have dropped in tandem with most emerging-market peers, benefiting from a wall of monetary stimulus and a risk-on mood as governments around the globe starting easing coronavirus restrictions.

(With input from Bloomberg)