Japanese government bond (JGB) yields saw a steepening curve, with shorter-dated yields tracking overnight declines in US Treasury yields. This movement was primarily driven by US consumer inflation slowing more than anticipated in June, which subsequently reduced market expectations for an imminent Federal Reserve rate hike.
Longer-dated JGB yields, however, rose due to renewed domestic fiscal and inflation worries in Japan, partially reversing earlier declines. The market also saw speculation regarding potential purchases by Japan's Government Pension Investment Fund (GPIF) in recent bond auctions.
For Pakistani investors, a slowdown in US inflation and reduced Fed rate hike expectations could weaken the US dollar, potentially supporting international gold prices. This might lead to higher gold rates in Pakistan, assuming the USD/PKR exchange rate remains stable or strengthens.
بحوالہ / Source: www.brecorder.com