FX.co ★ South Africa 10-Year Bond Yield at 2015-Lows

South Africa’s 10-year government bond yield has eased further to around 7.91%, approaching levels last seen in March 2015. The move reflects growing investor optimism ahead of the 2026 budget, amid expectations that inflation will remain well anchored and fiscal risks will stay contained. Finance Minister Enoch Godongwana is set to present the country’s fiscal strategy to lawmakers on February 25, with surging commodity prices likely to deliver a windfall through stronger-than-expected tax revenues. He is also expected to unveil additional measures aimed at boosting economic growth and attracting investment. At the same time, markets will be watching the upcoming January inflation data closely for signals about the South African Reserve Bank’s future policy stance.