10-year government bond yield in Mauritius
The interest rate the Government pays to borrow for 10 years, set at Bank of Mauritius auctions. The 5- and 20-year bonds show what it costs to borrow for shorter and longer.
5.60%
Where it stands
The 10-year auction of 12 August 2026 cleared at 5.60%, the 5-year of 8 September at 4.98% and the 20-year of 7 October at 5.93%. Longer loans cost the Government more, a normal upward-sloping curve, and all three are far above early 2021, when the 5-year paid 1.26%, the 10-year 2.41% and the 20-year 2.98%.
What it means
These yields set what the State pays on every new rupee it borrows, and they feed into what banks charge and pay. With a deficit of Rs 31.2bn to finance this year, each extra percentage point on that new borrowing adds about Rs 312 million a year to the interest bill (MoBriefs calculation). For savers, they are also the return on government bonds and on funds that hold them.
Recent years
| Year | 10-year government bond yield |
|---|---|
| 2021 | 3.78% |
| 2022 | 5.04% |
| 2023 | 4.83% |
| 2024 | 5.38% |
| 2025 | 5.76% |
Why it moved
2021: Low after COVID: the Key Rate was at 1.85%, and the 10-year yield rose through the year from 2.41% to 4.36% as the economy reopened.
2022: Up sharply as the Bank of Mauritius raised the Key Rate to 4.50% to fight inflation; the December auction paid 5.93%.
2023: Eased for 5 and 10 years as inflation came down, while the 20-year peaked (6.19% in January).
2024: Lower at the end of the year, after the Key Rate cut of September 2024 (10-year at 5.08% in September).
2025: The highest of the five years for every maturity, with the Key Rate back at 4.50% and a large budget deficit to finance.