South African government bonds were slightly weaker on Tuesday afternoon, as the rand lost ground against a stronger dollar.The dollar gained against the euro amid a renewed sell-off in US bonds, which saw the 10-year yield climb above 2.9%, the highest level in more than two-and-a-half years.The dollar had steadied as investors become cautious ahead of the release of the US Federal Reserve minutes for the January meeting, said TreasuryOne currency dealer Phillip Pearce. Comments from US officials that a weaker greenback should help reduce that country’s budget deficit also supported the greenback.Analysts expect some volatility later on Tuesday when US markets open, having been closed on Monday.Locally, Wednesday’s budget would be the primary local market-moving event this week.Investors and ratings agencies were waiting for the budget in order to gauge to what extent the government would rein in spending. SA’s fiscal deficit is being closely watched by agencies, including Moody’s,...
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