Bullish
🤖 65%
Pakistan CPI Eases, Hawkish SBP Dashes Rate Cut Hopes
Yields are likely to edge lower as inflation cools and the rate hold extends the pause, but the central bank's vigilance limits the rally.
Catalysts
- ▲ Disinflation momentum
- ▲ Prolonged rate pause
Risk Factors
- ▼ Inflation red-flag from food prices
- ▼ Global bond sell-off
▼ Show FAQ (2) ▲ Hide FAQ
Will Pakistani bond yields continue to fall?
If disinflation persists, yields may grind lower, but the SBP's hawkishness caps the rally and keeps yields elevated relative to pre-tightening levels.
What is the main risk to the bond market?
A surprise uptick in food or energy inflation could force the SBP to reverse course, sending yields sharply higher.