Slope of yield curves around the world

South Africa’s yield curve is steeper than in many emerging and advanced economies. Our steep curve reflects a high term premium, which is likely driven by inflation uncertainty and credit and liquidity premia, and these risks tend to be greater at longer maturities. The slope in the chart is based on the difference between sovereign long bod rates and policy rates to show that policy rates in many economies are currently higher than sovereign long bond rates.

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