South African bonds were slightly weaker in late afternoon trade on Tuesday, as US bond yields rose and the dollar weakened ahead of the US Federal Reserve’s rate decision, on Wednesday. A softer rand put local bonds marginally on the back foot, but analysts expected trade to remain largely range-bound ahead of the Fed’s announcement. Investors were waiting for further signals regarding the Fed’s economic expectations, and plans to unwind monetary stimulus. No media conference would take place. "With the Fed believed to be preparing measures to reduce the balance sheet from September, there may be hints at such a move in the statement," said Oanda analyst Craig Erlam. At 3.30pm the R186 was bid at 8.55% from 8.535% and the R207 was at 7.325% from 7.31%. The rand was at R13.0218 to the dollar from R12.9624. US bond yields usually rise on hawkish sentiment, which benefits the dollar. Dollar weakness on Tuesday was ascribed to renewed political jitters, with President Donald Trump desc...
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