SA bond yields shot up to the highest level since the outbreak of the global financial crisis more than a decade ago, highlighting the risks faced by the Reserve Bank as it comes under pressure to cut interest rates.

The sell-off in bond markets pushed the generic 10-year yield, which moves inversely to the price, up 73 basis points, or 0.73  percentage points, to 10.71% late on Monday, the highest since July 2008. The rand was down 1.9% at R16.5831/$, pushing its drop for the month so far to 5.4% and 15.31% for 2020.

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