South Africa’s 10-year government bond yield edged higher toward 8.40%, but remained near January 2020 lows, amid continued strong foreign inflows. Stronger governance, improved fiscal performance, greater political stability, and a credible monetary policy have bolstered investor sentiment in recent months. The South African Reserve Bank (SARB) has reinforced confidence by maintaining a firm focus on price stability, helping anchor inflation expectations and lower the risk premium previously embedded in local assets. Crucially, policymakers adopted a lower inflation target last year, strengthening expectations that South Africa will preserve its interest-rate advantage over the US. With the policy rate at 6.75% and inflation projected around 3.6%, real interest rates remain above 3%, making local bonds attractive to yield-seeking investors. Market optimism has also been bolstered by government efforts to revive economic growth, which has averaged below 1% over the past decade.