South African bonds retained their weaker bias but were little changed shortly before midday on Wednesday, as investors await policy signals from the US Federal Reserve open market committee meeting later on Wednesday. The Fed is not expected to adjust interest rates, but investors are looking for signs of intention regarding monetary policy tightening expected later in the year. The statement is only expected at about 8pm local time. Rand weakness overnight fed through into the bond market, but a defensive tone among investors was expected ahead of the Fed meeting, said Sasfin Wealth Securities analysts. Dow Jones Newswires reported that a bout of selling hit the US government bond market on Tuesday, as investors hedged their bets ahead of the conclusion of the Fed’s meeting. At 11.30am, the R186 was bid at 8.545% from Tuesday’s 8.540% and the R207 at 7.325% from 7.31%. US 10-year treasuries were bid at 2.316% from 2.3375%.
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