South Africa's 10-year government bond yield was around 10.2%, down from an over one-month high of 10.54% hit on August 21, with investors focused on the outlook for interest rates and the global economy. Federal Reserve Chair Jerome Powell warned that the central bank's inflation fight wasn't over, but said the Fed would pay close attention to economic growth and the state of the labor market when making policy decisions. On the domestic economic front, South Africa's annual consumer price inflation slowed to a two-year low of 4.7% in July, down from June's 5.4%, staying within the central bank's target range of 3%-6% and close to the preferred midpoint of 4.5%. The central bank left its key repo rate unchanged at a 14-year high of 8.25% during its July 2023 meeting, after 10 consecutive rate hikes, and it is seen holding borrowing costs for the rest of the year.
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 August of 2023.
The South Africa Government Bond 10Y is expected to trade at 10.34 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 10.73 in 12 months time.