Palladium futures rebound above $1,320/oz on lower bond yields

Palladium futures rose above $1,320 per ounce, rebounding from recent lows, as a drop in bond yields from multi-year highs boosted the appeal of non-yielding metals.

The US Treasury announced it will increase its buyback operations, pushing borrowing costs lower and boosting demand for non-yielding metals.

On the supply side, concerns over power supply disruptions and uncertainty surrounding Russian exports continued to underpin prices.

Meanwhile, uncertainty over shipments through the Strait of Hormuz kept industrial buyers cautious.

Although rising hybrid vehicle demand has provided near-term support for autocatalyst consumption, markets remain cautious amid the broader shift in demand toward EVs, which recorded a fifth consecutive monthly increase in July, as the palladium market could still record a global surplus.