South Africa: 10-Year Bond Yield Inches Higher.

South Africa’s 10-year government bond yield rose slightly above 8.60% as investors awaited July inflation data for clues on the outlook for interest rates. Headline inflation is expected to ease to around 4.5% from 5.0% in June, largely reflecting lower fuel and transport costs after the sharp increase seen in the previous month. A moderation toward 4.5% would ease concerns over further rate hikes while limiting expectations for near-term cuts, helping to preserve the relatively attractive real-yield and carry appeal of South African assets.