The South African bond market was weaker in late afternoon trade on Tuesday as the weaker dollar led to global risk-off trade. The dollar and US treasuries both weakened after the International Monetary Fund (IMF) cut its growth forecasts for the US economy to 2.1% in 2017 from 2.3%, and to 2.5% in 2018. The IMF based its view on the increasingly unlikely implementation of President Donald Trump’s policies, including tax reforms and infrastructure spending to boost GDP growth above 3%. Local bonds were also following a weaker rand, with the local currency losing nearly 1% against the dollar on weak employment data released earlier. The market was also anticipating a speech later in the day by US Federal Reserve chairwoman Janet Yellen. The market remains sceptical about a firmer rand, brought about partially by continued inflows into the bond market as investors continue to seek higher yields, which emerging-market bond instruments present. "The rand is being helped by a weaker doll...
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