South Africa: 10-Year Bond Yield at Over 1-Week High.

South Africa’s 10-year bond yield rose further to around 8.50%, the highest since mid-April, as traders weighed the latest inflation data and its implications on the interest rate trajectory. South Africa's inflation rate edged up to 3.1% in March from 3% in February, staying close to the SARB's 3% target and suggesting contained inflationary pressures. However, higher fuel prices stemming from the Middle East conflict are expected to push inflation higher from April. Speaking at the release of the April 2026 Monetary Policy Review, Governor Lesetja Kganyago stressed that the central bank will remain firmly committed to the country’s 3% inflation target, even as a fresh global shock threatens to derail the outlook. Headline inflation is expected to be higher in the near term and average 3.7% this year before easing back to target by late 2027. The bank said that monetary policy will be more cautious, warning that “overall, interest rates are likely to remain elevated for longer”.