South African government bonds were marginally weaker on Tuesday morning, with trading expected to be in tight ranges ahead of events in the afternoon. US inflation data at 2.30pm local time will be closely scrutinised, as it should give some indication as to the pace of monetary policy tightening in the US. Asian markets were firmer on Tuesday morning, but European markets were flat, after Chinese President Xi Jinping earlier pledged to cut car tariffs in a highly anticipated speech. Xi’s comments come amid escalating tension with the US over trade. Locally, the Reserve Bank monetary policy review is expected at 6pm. Foreigners sold off local bonds on Monday, possibly due to the fear of expropriation of land without compensation and the risk to the fiscus posed by state-owned enterprises, said Sasfin Securities bond analysts. Comments by Finance Minister Nhlanhla Nene regarding the financial collapse of several municipalities also probably weighed on sentiment. At 10am, the R186 wa...
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