South Africa's 10-year government bond yield fell to 8.7%, retreating from last week's three-month high above 9.0%, as easing tensions between the US and Iran pushed oil prices lower and improved market sentiment. Brent crude declined from two-month highs after Washington and Tehran paused hostilities following two weeks of strikes, raising hopes for a diplomatic resolution that could reduce geopolitical risks and allow shipping through the Strait of Hormuz to resume. Last week, government bond yields climbed sharply as a surge in energy prices fueled inflation concerns and the South African Reserve Bank unexpectedly left its benchmark interest rate unchanged, defying expectations of a 25-basis-point hike. Meanwhile, annual inflation accelerated to 5.0% in June, its highest level in two years, while core inflation rose to 4.1%, the strongest reading since September 2024. Both measures remain above the upper end of the SARB's 3% ±1 percentage point target range.