South African government bonds were weaker on Thursday morning, after the Reserve Bank’s monetary policy committee cut rates but gave no indications that there would be further cuts in coming months.The committee cut rates by 25 basis points to 6.75% on Wednesday, but was more guarded in its language regarding future moves than the market had hoped it would be."The fact that it was a four-three vote in favour shows just how close a call it was and not nearly as convincing as the pre-decision survey suggested," Sasfin Wealth’s head of fixed income trading, Ashley Dickinson, said."This would imply that the inputs were not as compelling and that the doves feared the pass-through of the value added tax effect was not totally factored in."Bank governor Lesetja Kganyago said the rand was less likely to strengthen further from its present levels.The rand and local bonds have strengthened materially since December as a result of an improved political and economic outlook.At 8.34am, the R186...
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