South Africa 10-Year Bond Yield at 8-Month Low

2025-09-23 15:22 By Luisa Carvalho 1 min. read

South Africa’s 10-year government bond yield was slightly below 9.20%, hovering near its lowest level since January, as investors favored domestic bonds for higher real returns amid easing US monetary policy.

Even with inflation near the lower end of the SARB's 3%-6% target range, real yields remain among the highest in emerging markets, backed by credible monetary policy, a more stable currency, and some structural improvements, including more reliable electricity and increased infrastructure investment.

Meanwhile, the South African Reserve Bank held its repo rate at 7% on September 19, pausing its easing cycle to assess prior cuts amid uncertainty and inflationary pressures.

The SARB explicitly committed to targeting inflation at the lower end of its 3%-6% range, rather than the prior 4.5% midpoint, marking a major shift in monetary policy with broad implications for long-term interest rates and economic planning.

Investors now wait for formal endorsement from the National Treasury.



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