South Africa 10-Year Bond Yield Remains Low

2025-10-09 10:37 By Luisa Carvalho 1 min. read

South Africa’s 10-year government bond yield eased further to around 9%, a new low since late January, as investors are drawn to higher-yielding assets amid US rate-cut expectations and the ongoing budget stalemate.

With policy rates well above those in advanced economies, controlled inflation, the rand’s improved stability, and the Reserve Bank’s credibility, the real yield differential remains compelling for global investors seeking higher returns.

The decline in yields accelerated after Governor Kganyago’s July 31 statement signaling the central bank’s preference for inflation to settle at the lower end of its 3%-6% target.

He pointed out that keeping inflation low helps maintain stable, lower interest rates, which support investment, job creation, and growth.

Structural improvements, including a more reliable electricity supply, robust reserves, and a stable coalition government, have further strengthened investor confidence, despite external risks.



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