South Africa’s 10-year government bond yield eased to around 8.64%, pulling back after reaching a high of 8.74% on August 18, the steepest since July 30. The retreat came as global bond markets recovered after the US Treasury moved to strengthen liquidity support for long-dated securities, helping reverse some of the recent selloff. Meanwhile, traders digested the latest domestic inflation data while awaiting the FOMC minutes for further guidance on the global monetary policy outlook. Headline inflation slowed by more than expected to 4.3% in July from 5% in June, although core inflation accelerated slightly for the fifth month to 4.2%. The softer headline reading may offer only temporary relief, as higher diesel prices in August and expected fuel price increases in September could push inflation higher again. This leaves the SARB’s September decision finely balanced between a hold and a 25-bps hike. The central bank left rates unchanged at 7% last month.