Bonds were softer in late trade on Wednesday due to rand losses amounting to more than 1% on the day.

This followed economists at ratings agency Standard & Poor’s (S& P) revising down SA’s 2016 economic growth forecast.

S& P’s economists said in a report that a range of adverse global and domestic factors continued to weaken the country’s macroeconomic outlook‚ lowering its expectations to 0.8% from November’s 1.6% forecast. It also revised its 2017 forecast to 1.8%‚ down from November’s 2.1%.

At 3.40pm the benchmark R186 bond was bid at 9.285% and offered at 9.275% from Tuesday’s close of 9.255%.

The middle-dated R207 was bid at 8.730% and offered at 8.710% from a previous close of 8.720%.

The rand was trading at R15.2675 to the dollar from R15.0916 on Tuesday.

Separately‚ Rand Merchant Bank’s bond trader‚ Gordon Kerr‚ said the government bond auction on Tuesday proved mixed‚ with shorter-dated bonds performing best. The result was expected and in line with previous auctions and with secondary-market trading‚ he said.

Given how poor the long end continued to perform‚ it seemed as though the Treasury would continue to focus its issuance on shorter-dated stocks until a time when long-end demand returns‚ Mr Kerr said.

Meanwhile‚ investors were looking ahead to minutes from the US Federal Reserve’s March policy meeting‚ due at 8pm local time on Wednesday.

The minutes should offer more details on the central bank’s economic and interest-rate projections and officials’ views on slowing growth overseas‚ Dow Jones Newswires reported.

Fed chairwoman Janet Yellen’s recent cautious stance has helped weaken the dollar and boost US stocks‚ as investors dialled back expectations for US interest-rate rises‚ the newswire said.