South Africa 10-Year Bond Yield at Fresh 2021-Lows

2025-11-12 12:49 By Luisa Carvalho 1 min. read

South Africa’s 10-year government bond yield fell to around 8.72%, the lowest level since June 2021, after the government officially reduced South Africa's inflation target to 3% following repeated calls from the central bank.

During the presentation of the mid-year budget review, Finance Minister Godongwana said that the new target will have a one-percentage-point tolerance band on either side to accommodate economic fluctuations.

The main objective is to control inflation better and improve the country's competitiveness.

The South African Reserve Bank has long called for a narrower inflation target, arguing that the 3–6% range was too wide and reduced the nation’s competitiveness.

Meanwhile, the government projected an improved fiscal outlook, though economic growth is expected to ease slightly this year, and debt is forecast to peak at higher levels.



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