South African bonds were weaker on Tuesday morning with the market focus on this week’s central bank decisions. The Reserve Bank will announce its interest-rate decision on Thursday‚ after a two-day monetary policy committee (MPC) meeting and the release of Wednesday’s inflation data. General market expectation is that the Bank will cut interest rates by 25 basis points. Sasfin fixed income trader Alvin Chawasema said non-resident purchases of local bonds continued to dominate, as they accumulated more bonds ahead of the conclusion of the monetary policy committee meeting. Investors are also waiting for the Federal open market committee’s (FOMC’s) policy statement on Wednesday. Few investors expect the Fed to raise interest rates, but they expecting further details on plans to reduce its $4.5-trillion balance sheet in the months ahead. At 9.03am the R186 government bond was bid at 8.420% from Monday’s 8.385%.
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