FX.co ★ South Africa 10-Year Bond Yield Off 4-Month Highs

South Africa’s 10-year bond yield has retreated to around 8.40%, down from a four-month high of nearly 8.70% reached on March 9, as risk aversion eased on optimism about a possible resolution to the Iran war. Previously, yields had climbed on concerns that higher oil prices and a weaker rand could reignite inflation, potentially pushing the South African Reserve Bank (SARB) to resume monetary tightening. This followed an earlier rally that had driven yields to decade lows, supported by confidence in the SARB’s 3% inflation target, ongoing economic reforms, and elevated precious-metal prices, among other supportive factors. At the same time, South Africa’s economy appears to be regaining traction. In 2025, GDP grew by 1.1%—its strongest expansion in three years—after a period of sluggish performance largely attributable to widespread load shedding and high interest rates.