FX.co ★ South Africa 10-Year Bond Yield Falls to 1-Month Low

South Africa’s 10-year bond yield slipped to just under 8.7%, its lowest level in nearly a month, as global risk sentiment improved following the announcement of a conditional two-week ceasefire in the Middle East. While traders remain cautious until the truce demonstrates durability, optimism over the reopening of the Strait of Hormuz has helped to alleviate inflation concerns. The reduction in geopolitical tensions has also led investors to pare back expectations for a more hawkish policy stance from major central banks.