South Africa 10-Year Bond Yield at 2021-Lows

2025-11-17 14:49 By Luisa Carvalho 1 min. read

South Africa’s 10-year government bond yield eased to near 8.60%, its lowest level since February 2021, after S&P Global upgraded the nation’s credit rating for the first time since 2005 on the back of a credible and optimistic medium-term budget review.

At the same time, Treasury's backing of the new 3% inflation target, aimed at anchoring prices at lower levels, strengthens monetary policy credibility and paves the way for lower interest rates.

Markets are pricing in a possible 25-basis-point cut by the South African Reserve Bank on November 20, contingent on October inflation data due the day before.

Investor confidence has notably strengthened recently, fueling a rally in South African assets, amid progress in fiscal consolidation, the ongoing government stability, and structural improvements such as more reliable electricity supply and increased infrastructure investment.



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