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Comparative yield curve slopes - Codera Analytics

Comparative yield curve slopes

South Africa’s sovereign yield curve is steeper than in many emerging and advanced economies. Our steep curve reflects a high term premium, which is driven by  inflation uncertainty and credit and liquidity premia, and these risks tend to be greater at longer maturities. A key factor in the steepening of South Africa’s yield curve since 2015 has been the deterioration in our fiscal position.