The initial market reaction to Finance Minister Enoch Godongwana's mini budget was cautiously positive as it allayed -- for now -- some of the graver concerns among investors.

One key gauge of the reception of the annual Medium-Term Budget Policy Statement (MTBPS) and the February Budget for the upcoming government fiscal year is the reaction of the markets.

On that front, Finance Minister Enoch Godongwana once again pulled a rabbit out of one of his stylish hats, as the rand and domestic bonds both made mild gains in the wake of his speech.

By late Wednesday, the rand was fetching 18.59/dlr compared with about 18.70/dlr shortly before the minister began speaking, while the yield on the benchmark 2030 government bond fell by nine basis points to 10.585%.

International investors also gave the MTBPS, which provides a broad fiscal outlook for the next three years, a cautious thumbs up, with the government's sovereign dollar bonds falling by as much as 0.6 cents.

The JSE put in marginal gains on the day but the equities market does not follow the beat of fiscal policy in quite the same way.

"This MTBPS was better than many expected in the market and so there has been some justified relief. The question is if it's credible," Peter Attard Montalto of the consultancy Intellidex told Daily Maverick.

Spending cuts, for example, will be a...