The South African government has done a good job of building a reasonable yield curve in inflation-linked securities. Since the inception of the country's inflation market in 2000, it has issued across a range of maturities, from two years to 30 years. This has been good news for certain institutional investors, namely pension funds that have long-term inflation-linked liabilities. The problem is that new issuance, although spread across the yield curve, has been in relatively short supply.
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