South Africa’s 10-year government bond yield rose further to around 8.72%, the highest since late July, amid renewed pressure across global markets. Growing doubts over a quick resolution to the Middle East conflict lifted oil prices and reignited concerns about persistent inflation. The risk of further escalation and a prolonged war kept investors cautious, despite easing expectations for additional Federal Reserve rate hikes. Domestically, investors awaited July inflation data due on August 19 for clues on the outlook for interest rates. Headline inflation is expected to ease to around 4.5% from 5.0% in June, helped by lower fuel and transport costs after the sharp increase seen in the previous month. A moderation in inflation toward 4.5% would reduce the likelihood of further monetary tightening, while keeping expectations for near-term rate cuts contained.