South Africa’s 10-year government bond yield was around 8.36%, close to the lowest since mid-June, as investors monitored fresh developments in the Middle East, while also eyeing upcoming key domestic data.
The US and Iran agreed to pause hostilities and allow commercial vessels to freely pass through the Strait of Hormuz after weekend clashes threatened to derail efforts to reach a broader peace agreement.
Oil prices rose again in response, but remained around pre-conflict levels, amid improved traffic in the Strait of Hormuz and hopes for a definitive resolution to the war.
Domestically, attention turns to a slate of economic data releases, with the Q2 inflation expectations survey in focus for further clues on inflation dynamics and policy direction ahead of the SARB’s rate decision next month.
Meanwhile, the central bank will publish its June quarterly bulletin, providing insight into South Africa's economic performance in the first quarter.