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Term premia in SA, AU, NZ and CAN - Codera Analytics

Term premia in SA, AU, NZ and CAN

South Africa’s 10 year government bond rate is more than 700 basis points higher than the Canada, Australia or New Zealand. We estimate that the term premium embedded in South African government 10-year bond rates can explain almost half of the spreads, with the term premium more than 300 basis points higher in South Africa than in the these countries.

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