FX.co ★ South Africa 10-Year Bond Yield Hovers Near 2018-Lows

South Africa's 10-year government bond yield is trading just below 8%, maintaining proximity to its lowest point since March 2018. This performance is driven by ongoing optimism surrounding the nation's economic fundamentals, which continue to attract foreign investors. Key positive factors include structural reforms, fiscal discipline, a credible central bank, political stability, a favorable currency situation, and high real interest rates. The economy is further bolstered by strong metal prices and low oil costs, which contribute to favorable terms of trade, enhancing the government's fiscal position and alleviating inflationary pressures. Although GDP growth remains modest, it is showing consistent positive momentum, with the central bank forecasting a growth rate of 1.4% this year and nearly 2% in the medium term.