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A local trader said much of the bonds weakness had to do with the announcement of a 20 cents increase in the general levy on petrol and diesel with effect from April 4.

At 15:32, the benchmark R157 bond was bid at 6.635%, from its previous close of 6.605%. The R207 was bid at 7.750% and offered at 7.720% from a previous close of 7.720% and the R186 was bid at 8.270 and offered at 8.240% from its close of 8.215%.

The rand was bid at 7.7261 against the dollar from its previous close of 7.7313.

The trader said that investors who had had a "bullish position" prior to the budget were now forced to "unwind their positions" as the fuel levy was deemed inflationary by about 2.5% per annum provided "nothing else changes."

Foreigners were net buyers of R1.084 billion of South African bonds including repo transactions on Tuesday after net sales of R1.974 billion of local bonds on Monday, data released by the JSE shows.

Nominal cumulative volume was R204.873 billion on Tuesday from R57.525 billion on Monday.

Foreigners were net buyers of R906.933 million of South African bonds excluding repo transactions on Tuesday after net sales of R1.975 billion of local bonds on Monday.

For the year to date foreigners have been net buyers of R10.005 billion of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359 billion worth of local bonds, excluding repo transactions.

In the year to date foreigners have been net buyers of R8.625 billion of local bonds including repo transactions. In 2011 they bought R37.501 billion of local bonds.