South African government bonds were weaker on Tuesday morning, despite a slight rand recovery, as market focus was squarely fixed on rising US bond yields. The benchmark US 10-year treasury earlier hit 2.99%, with the psychological 3% level being closely observed, as the dollar finds continued support from expectation of a more hawkish US Federal Reserve. Rising inflation expectations in the US and recent multiyear highs for Brent crude, have supported the greenback, which has firmed to a three-month high against the euro. In the absence of major data releases, financial results season in the US will also be closely watched, with the opening of the Dow expected to give some indication of risk sentiment in the market. "Global markets are subdued and closed mostly flat, US corporate earnings are expected to dictate market direction this week," Nedbank Corporate and Investment Banking analysts said. At 10am the R186 was bid at 8.17% from 8.15% and the R207 at 7.085% from 7.055%. The ra...
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