Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Indian government bonds rallied on Wednesday after consumer inflation inched marginally higher in June. Also, rising speculations over the appointment of new reserve Bank of India (RBI) governor boosted demand for safe-haven assets.
The yield on the benchmark 10-year bonds, which moves inversely to its price fell 3-1/2 basis points to 7.303 percent and the yield on short-long 3-year bonds dipped more than 4 basis points to 6.969 percent by 07:00 GMT.
The Indian consumer inflation rose 5.77 percent in June, bit higher than the market consensus of 5.73 percent, as compared to 5.76 percent in May.
Moreover, the India’s central bank will auction government bonds worth 150 billion rupees on July 15, which includes 80- billion rupees of 7.61 percent 2030 bond. The RBI will also auction similar amount of 91-day and 182-day treasury bills today.
According to Reuters, two television news channels reported that Prime Minister Narendra Modi may name Arvind Panagariya as the next governor of the Reserve Bank of India. He is currently the vice chairman of top government think-tank NITI Aayog.
"Personally, I am a dove when it comes to inflation. It is not clear to me that once inflation has been brought down to 7-8 percent range, pushing the brakes further on money supply buys us a lot. Moreover, given that a very large part of the economy is simply cutoff from credit markets, it is not clear how effective the interest-rate hikes are in taming inflation", said Arvind Panagariya in an interview to the Wall Street Journal.
Meanwhile, the Sensex fell 0.10 percent or 28.69 points to 27,776.52 and Nifty-50 futures trading 0.06 percent lower or 2 points at 8,525.5 by 07:30 GMT.
