South Africa: 10-Year Bond Yield Rise From 3-Month Lows.

South Africa’s 10-year government bond yield rose above 8.50%, up from recent three-month lows, tracking US peers. Hotter-than-expected US inflation data and hawkish remarks from Fed Governor Christopher Waller fueled concerns over further monetary tightening. Meanwhile, oil prices extended their decline amid growing optimism over a potential US-Iran peace agreement, improving the domestic inflation outlook. As a net oil importer, South Africa is also expected to benefit from November’s fuel levy relief, helping lower costs for households and businesses. However, the sustainability of this relief will depend largely on international oil price movements in the coming months. Meanwhile, the results of last week's local elections showed that the ruling party ANC trailed its rivals in most of South Africa's major metropolitan areas. The setback has weakened its bargaining position in the upcoming coalition talks, reducing its influence over the formation of city governments.