Indiaโs Bond Market Shows Bets Building for More RBI Rate Hikes
The 10-year bond yield climbed to a more than three-year high of 7.41% on Wednesday.
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The 10-year bond yield climbed to a more than three-year high of 7.41% on Wednesday.
Anna Edwards, Guy Johnson, Tom Mackenzie, and Adam Linton break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." (Source: Bloomberg)
Amy Gower said gold is facing significant near-term pressure from rising long-dated bond yields and a stronger dollar, noting that as a nonyielding asset it becomes less attractive when investors can earn higher returns elsewhere. Even so, she argued that gold remains well supported because the metal is still trading above $4,000 an ounce, suggesting other forces are offsetting those headwinds. Gower pointed to strong physical demand, including central bank buying, active purchases from China and Poland, Chinese gold imports running more than 10 times PBOC reserve additions, and rising gold ETF holdings through September, which she said is unusual during a Fed hiking cycle. She also cited longer-term supports such as concerns about currency debasement, government debt, and fiscal sustainability. (Source: Bloomberg)