South African bonds were weaker on Monday afternoon as the market awaited further guidance from the US Federal Reserve meeting on Wednesday.The market was following a slightly weaker rand as UK and US yields rose amid indications the Fed might adopt a slightly more hawkish stance.No change in US rates is expected but the Fed could provide more information on the planned reduction of the Fed’s huge balance sheet, built up after the 2008 financial crisis to increase liquidity and confidence in the markets.The local market has been supported by foreign buying up to now following the Reserve Bank’s unexpected decision last week to lower the repo rate from 7% to 6.75%."Our long-bond yields of around 8.5% were still attractive relative to expected inflation, and more so if further rate cuts are forthcoming," said Old Mutual Multi-Managers analyst Dave Mohr.Mohr said in a global context South African yields were still among the highest of major emerging-market economies.At 3.34pm the R186 ...
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