Brazil's 10-year government bond yield fell to 14.43% in July from 14.54% a week earlier after inflation data came in below expectations. Annual inflation eased to 4.64% in June from 4.72% in May, below market forecasts of 4.80%, bringing it closer to the BCB's target range of 1.5%-4.5%. The softer inflation reading reinforced expectations that the central bank could adopt a more dovish stance. Meanwhile, oil prices retreated on signs that diplomatic efforts between the US and Iran remain on track despite recent tensions, easing energy-driven inflation concerns. At the same time, formal job creation slowed to about 73,000 positions in May, well below forecasts of 115,000, pointing to a gradual cooling in the labor market.