Indian government bonds saw a recovery following softer-than-expected US inflation data for June, which significantly lowered the probability of a Federal Reserve rate hike in July from 42% to 17%. This initially eased US Treasury yields, providing some relief to emerging markets.
However, the gains were blunted as crude oil prices surged, with Brent futures extending to $85/barrel due to supply disruptions in the Strait of Hormuz. This rise in oil prices pushed US Treasury yields back up, highlighting ongoing inflation and fiscal risks for global markets.
For Pakistan, a softer US rate outlook could potentially ease pressure on the US Dollar, while rising crude oil prices could increase imported inflation and put depreciation pressure on the PKR, impacting local gold and silver rates.
بحوالہ / Source: www.brecorder.com