South Africa: 10-Year Bond Yield Edges Up.

South Africa’s 10-year bond yield rose back to around 9%, reflecting a more cautious sentiment as investors weighed renewed Iran war uncertainty. A fresh wave of strikes and contrary signals from the US and Iran on potential negotiations to end the Middle East Conflict continued to fuel growth and inflation concerns. There are concerns that a prolonged war and higher oil prices could push inflation higher in energy-importing South Africa. At the same time, the country imports most of its fertilizers, making local agriculture vulnerable to global price spikes that could drive up food prices. Attention turns to the upcoming SARB's decision, the second of the year, with a hold widely anticipated amid heightened risks. South Africa’s headline inflation fell for the second consecutive month to 3% in February, reaching the central bank’s new target, but it is expected to rise in the coming months.