South Africa 10-Year Bond Yield Rises to Over 1-Month High
2026-09-01 10:35
By
Luisa Carvalho
1 min. read
South Africa’s 10-year government bond yield moved higher to around 8.85%, the highest in over a month, tracking an extended global selloff driven by growing inflation concerns linked to the prolonged Middle East conflict.
Rising oil prices amid escalating hostilities between the US and Iran reinforced inflation expectations, which increased the prospect of interest rate hikes by major central banks.
In South Africa, inflationary pressures are building again, with further fuel price adjustments due to take effect this month.
Higher fuel costs are expected to raise transport and other prices, potentially feeding through to the broader economy and complicating the inflation outlook.
South Africa’s annual inflation fell to 4.3% in July from 5% in June, marking its first decline in five months, mainly on the back of slowing prices of fuels and food.
The SARB is set for another difficult decision this month, weighing inflationary pressures against the need to support the economy.