South African bond yields jump as Greece prompts global sell-off

The yield on paper maturing in 2026, the benchmark for the market, spiked 11.5 basis points higher to 8.205 percent. By 0932 GMT, it had pulled back slightly to 8.19 percent.

"It's just a follow-on on what's happened internationally, with the U.S. Treasuries having their biggest sell-off in a while, European bonds under pressure and that's all on the back of Greece," a trader at World Wide Capital Securities said.

Debt-ridden Athens is close to running out of cash and there had been doubt about whether it would make a payment due to the International Monetary Fund or choose to save cash to pay salaries and pensions.

"Despite them making their payment to the IMF, they came out with a statement that their liquidity will be under severe pressure," the bond trader said.

South Africa's rand was also under pressure, weakening 0.48 percent to 12.1360 against the dollar compared with Monday's New York close.

"The fear over Greece is that time is passing and there is still no resolution," Rand Merchant Bank analyst John Cairns said in a note.

On home ground, investors were eyeing factory output data due at 1100 GMT.

A weaker-than-expected print would dampen expectations for a domestic rate hike later this month, analysts said, adding to pressure on the local currency.