Spot USD/ZAR has stabilised today, with US markets closed for a national holiday and market participants moving on after the formation of South Africa's national cabinet. The pair last deals at 18.4500, around 350 pips higher on the session, with bulls looking to attack the round figure/Jun 6 high of 19.0000/54. On the flip side, bears see Jun 21 low of 17.8689 as their initial target.

• The outcome of cabinet talks in Gauteng points to the risk of tensions at the national level, as Premier Lesufi (ANC) decided to form a minority provincial executive after his negotiations with the Democratic Alliance (DA) collapsed. This will force him to seek ad hoc coalitions and/or confidence-and-supply deals to push legislation through the assembly.
• SAGB yields are mostly a tad lower, with 5-year and 10-year breakeven inflation rates slipping to 4.89% and 5.98% respectively.
• South Africa's electricity production/consumption data will be out at 12:00BST/13:00SAST.