Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Australian government bonds slumped on Wednesday as investors poured into safe-haven assets following upbeat second quarter consumer inflation data, in line with market expectations. This indicated that the Reserve Bank of Australia (RBA) would not consider easing its key policy rate immediately.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 4 basis points to 1.965 percent and the yield on short-term 2-year note jumped nearly 3 basis points to 1.589 percent by 05:20 GMT.
Australia’s second quarter headline consumer price index (CPI) increased 0.4 percent q/q, in line with expectations, as compared to negative 0.2 percent in the previous quarter. Also, core inflation rose 0.5 percent q/q, a bit higher than the consensus of 0.4 percent q/q, from 0.2% in the first quarter of 2016.
On an annual basis, it eased 1 percent y/y, marginally lower than the economist consensus of 1.1 percent, from 1.3 percent during the same period a year ago. However, core-CPI remained flat at 1.7 percent y/y, higher than the expectations of 1.5 percent y/y
Interestingly, the Reserve Bank of Australia is scheduled to meet on August 2, for which the market pricing for a cut was around 70 percent prior to the inflation data; it has now gone down to 50 percent post the inflation results.
Meanwhile, the benchmark Australia's S&P/ASX 200 index was also trading down 0.21 percent or 11 points at 5,493 by 05:20 GMT.
