South Africa: 10-Year Bond Yield Eases Slightly.

South Africa’s 10-year government bond yield was around 8.67%, down slightly from an over two-week high of 8.71% hit on August 18. Traders digested the latest domestic inflation data while awaiting the FOMC minutes for further guidance on the global monetary policy outlook. South Africa’s headline consumer inflation slowed to 4.3% in July from 5% in June, ending four months of acceleration and coming below the expected 4.5%. However, the core inflation rate accelerated slightly to 4.2%, the highest since July 2024, from 4.1% previously. The mixed inflation picture supports expectations that the SARB will keep rates unchanged at its September 23 meeting while monitoring the potential impact of the Iran conflict. The central bank left rates unchanged at 7% last month, pointing to a more favorable inflation outlook and expectations of a return to the 3% target.