South Africa 10-Year Bond Yield at Over 1-Week High

2026-09-25 11:53 By Luisa Carvalho 1 min. read

South Africa’s 10-year government bond yield was around 8.90%, its highest since mid-September, as investors continued to assess the South African Reserve Bank’s latest policy decision and Middle East developments.

The SARB raised its policy rate by 25 bps on September 23, its second hike this year, and struck a relatively hawkish tone, citing renewed fuel-price pressures and rising global interest rates.

The central bank said tighter monetary policy was needed to prevent higher inflation from becoming entrenched.

It expects inflation to remain elevated into 2027, driven largely by fuel and services inflation, before returning to its 3% target toward the end of 2027.

The inflation rate rose to 4.4% in August from 4.3% in July.

The Fed’s 25 bps hike last week has further raised pressure on the SARB to preserve South Africa’s yield advantage over US assets.

Meanwhile, the unresolved US-Iran conflict continue to fuel concerns over inflation, despite the recent easing in oil prices.



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South Africa 10-Year Bond Yield at Over 1-Week High
South Africa’s 10-year government bond yield was around 8.90%, its highest since mid-September, as investors continued to assess the South African Reserve Bank’s latest policy decision and Middle East developments. The SARB raised its policy rate by 25 bps on September 23, its second hike this year, and struck a relatively hawkish tone, citing renewed fuel-price pressures and rising global interest rates. The central bank said tighter monetary policy was needed to prevent higher inflation from becoming entrenched. It expects inflation to remain elevated into 2027, driven largely by fuel and services inflation, before returning to its 3% target toward the end of 2027. The inflation rate rose to 4.4% in August from 4.3% in July. The Fed’s 25 bps hike last week has further raised pressure on the SARB to preserve South Africa’s yield advantage over US assets. Meanwhile, the unresolved US-Iran conflict continue to fuel concerns over inflation, despite the recent easing in oil prices.
2026-09-25
South Africa 10-Year Bond Yield Inches Higher
South Africa’s 10-year government bond yield rose to near 8.90%, its highest since mid-September, as oil prices climbed and markets priced in further policy tightening. The South African Reserve Bank raised its repo rate by 25 basis points to 7.25%, as expected, while signalling that further increases could follow this year. The decision comes after the Federal Reserve cut rates by 25 basis points last week, restoring some of South Africa’s yield advantage. Governor Lesetja Kganyago pointed to upside risks to inflation and downside risks to growth. Fuel-price volatility remains a concern amid the ongoing Middle East conflict, while food and core goods inflation have been more favourable. Headline inflation is expected to exceed 5% later this year and in early 2027 before moderating as the fuel shock dissipates, returning to around 3% by end-2027.
2026-09-23
South Africa 10-Year Bond Yield at Over 2-Week Low
South Africa’s 10-year government bond yield was around 8.75%, holding close to the lowest in over two weeks, as investors weighed fresh inflation data ahead of the SARB’s policy decision. Annual inflation edged up to 4.4% in August from 4.3% in July, remaining above the central bank’s 3% target and keeping the focus on persistent price pressures. While the reading came in below expectations, rising fuel costs and the prospect of further external pressures could keep inflation risks elevated. The Fed’s 25-basis-point rate hike last week has also raised the stakes for the SARB, as keeping rates unchanged could reduce South Africa’s yield advantage over US assets and put additional pressure on the rand, potentially feeding through to imported inflation. Against this backdrop, the SARB is widely expected to raise rates by 25 basis points later today, which could further increase the appeal of local government bonds.
2026-09-23