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10Y Real Yields: South Africa and Indonesia Remains The ‘Hot Spot’

EMERGING MARKETS
  • South Africa and Indonesia remain the two economies where the 10Y real yields are the highest despite the rise in inflation in recent months, currently standing above the 4% level.
  • We have seen that the elevated real yields have been one of the main drivers of the ZAR since the start of the year, which is the second best performing currency among the EM world (up 10% against the USD).
  • On the other, real yields are still standing at historical low in the CEE region despite the sharp increase in LT bond yields.
  • Czech Republic stands at the bottom of the League (second after Turkey), with a 10Y real yield currently at -8.6%.

Source: Bloomberg/MNI

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