23.03.202614:05:17UTC+00South Africa 10-Year Bond Yield Off 6-Month Highs

South Africa’s 10-year government bond yield eased to around 8.9%, retreating from a six-month high of 9.20% reached on March 20. The move came as global risk sentiment improved after US President Trump stated that the US and Iran had held “very good and productive conversations” aimed at resolving the conflict. Heightened tensions in the Middle East—especially the escalating confrontation with Iran and attacks on key energy infrastructure—have been a major driver of volatility in oil markets, stoking global inflation worries and reducing expectations for imminent interest rate cuts.

Domestically, South Africa’s headline inflation eased for a second consecutive month, reaching 3% in February and aligning with the South African Reserve Bank’s new target. This moderation is widely viewed as temporary: elevated oil prices are expected to push domestic fuel costs higher, with likely second-round effects on the broader economy and upward pressure on inflation in the coming months. The South African Reserve Bank convenes on March 26 and is expected to leave interest rates unchanged in light of persistent global uncertainties.