South Africa's 10-year government bond yield edged lower to around 10.1%, the lowest since August 16th, after the Federal Reserve signaled it would slow its pace of interest-rate increases next month. Meanwhile, the South African Reserve Bank delivered another big rate hike of 75 basis points at its November 2022 meeting, with the aim of taming high inflation and also aligning with the Fed’s movements so far. Since November last year, the MPC has raised interest rates off record lows by 350 basis points, bringing the key repo rate to 7% and the prime lending rate for consumers to 10.5%. South Africa's annual inflation rate unexpectedly edged up to 7.6% in October, from September's 7.5%, still uncomfortably above the midpoint of the central bank's target range of 3%-6%.
Historically, the South Africa Government Bond 10Y reached an all time high of 20.69 in August of 1998. South Africa Government Bond 10Y - data, forecasts, historical chart - was last updated on November of 2022.
The South Africa Government Bond 10Y is expected to trade at 10.53 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 10.95 in 12 months time.