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South African Bond Yields Reference

What this page covers

South African government bonds are quoted by code and maturity. The yield on the long end is the market's price for holding South African risk over a decade, and it moves on things the repo rate does not.

9.6%R2030 yield
11.7%the long end
R2035a common benchmark
Inverseprice to yield
Benchmark bonds
CodeMaturityApproximate yieldRole
R18620268.4%The old short benchmark, now near maturity
R203020309.6%The medium benchmark
R2035203510.8%A common long reference
R2040204011.4%The long end
R2048204811.7%The longest liquid line
The curve and what shapes it
SegmentDriven mainly by
Short end, under 3 yearsExpected repo rate over that period
Belly, 3 to 10 yearsInflation expectations and the growth outlook
Long end, beyond 10 yearsFiscal risk, debt trajectory and the term premium
Spread over US TreasuriesCountry risk and the global risk appetite
Yield against a repo-linked alternative
InstrumentYieldRate riskCredit risk
Money marketAbout the repo rateNoneBank
R2030 held to maturity9.6%None if heldGovernment
R2030 sold early9.6% plus or minus priceHighGovernment
RSA Retail Savings BondSet at issueNoneGovernment
Bond ETFTracks an indexHighGovernment

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How these figures work

The figures on this page come from published sources and change on a schedule rather than continuously, which is what makes them worth recording in one place. A bond's yield and its price move in opposite directions. A rising yield means an existing holder has lost capital, which is why a bond fund can fall in a year when rates rise.

The spread between the South African long bond and the US ten-year is the cleanest read on how the market prices country risk. It widens on fiscal news before it widens on anything else.

★ A worked example

Reading the tables together is where the value is. Retail access is through RSA Retail Savings Bonds, a bond ETF, or a unit trust. Buying an individual line directly is possible but the minimum sizes are institutional.

✕ Common mistakes

  • A bond's yield and its price move in opposite directions. A bond's yield and its price move in opposite directions. A rising yield means an existing holder has lost capital, which is why a bond fund can fall in a year when rates rise.
  • The spread between the South African long bond and the US ten-year is . The spread between the South African long bond and the US ten-year is the cleanest read on how the market prices country risk. It widens on fiscal news before it widens on anything else.
  • Retail access is through RSA Retail Savings Bonds, a bond ETF, or a un. Retail access is through RSA Retail Savings Bonds, a bond ETF, or a unit trust. Buying an individual line directly is possible but the minimum sizes are institutional.
  • Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.

Notes on reading these figures

  • A bond's yield and its price move in opposite directions. A rising yield means an existing holder has lost capital, which is why a bond fund can fall in a year when rates rise.
  • The spread between the South African long bond and the US ten-year is the cleanest read on how the market prices country risk. It widens on fiscal news before it widens on anything else.
  • Retail access is through RSA Retail Savings Bonds, a bond ETF, or a unit trust. Buying an individual line directly is possible but the minimum sizes are institutional.

To put these figures to work, the Bond vs Invest Calculator runs the arithmetic on your own numbers, and Bonds and the rand covers the same ground in ordinary language. SARB Repo Rate History and CFDs on bonds go into the detail this table only summarises. The South African Inflation History covers the part this table leaves out.

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Terms used on this page

Definitions
Yield
The return to maturity, moving inversely to price.
Term premium
The extra yield demanded for holding a longer bond.
Curve
The shape of yields across maturities, from short to long.
Spread over Treasuries
The gap to the US ten-year, a read on country risk.
Benchmark bond
The most liquid line at a given maturity, used as the reference.

Frequently asked questions

Why do bond prices fall when yields rise?

The coupon is fixed. If the market demands a higher return, the only way to deliver it on an existing bond is a lower price.

What does the spread over US Treasuries tell me?

How the market prices South African country risk. It widens on fiscal news before it shows up anywhere else.

Can I buy government bonds directly?

Individual lines are traded in institutional size. Retail access is through RSA Retail Savings Bonds, a bond ETF or a unit trust.

What is the term premium?

The extra yield demanded for holding a longer bond, compensating for uncertainty over that period.

Is a bond fund safe?

It carries no credit risk on government debt, but full price risk. A bond fund can fall in a year when yields rise.

Which bond is the benchmark?

The most liquid line at each maturity. R2030 and R2035 are commonly quoted references.