Xi Jinping Flew to Trump, and US Treasury Yields Broke a 19-Year Record: Digest for September 24
On Thursday, September 24, 2026 (data as of 06:45 GMT), markets faced a powerful sell-off due to a surge in inflation fears. Unexpectedly strong US PMI indices indicated accelerating prices, causing 10-year US Treasury yields to break through 5.11% — the highest since 2007.
On Thursday, September 24, 2026 (data as of 06:45 GMT), markets faced a powerful sell-off due to a surge in inflation fears. Unexpectedly strong US PMI indices indicated accelerating prices, causing 10-year US Treasuries yields to break 5.11% — the highest since 2007. Wall Street closed in the red led by the technology sector, oil returned above $103 per barrel on Iran's tough statements, and Tokyo is replaying the AI rally after the holidays.
Bonds and PMI: Inflation Surge Pushes Rates to 2007 Peaks
Business activity shock: September US PMI indices came in significantly above forecasts, but the report revealed multi-year highs in inflation of purchasing and selling prices. Investors price in about a 70% chance of another Fed rate hike in October.
| US PMI Indicator | Actual | Forecast |
|---|---|---|
| Manufacturing | 57.0 | 53.7 |
| Services | 58.7 | 55.8 |
| Composite | 58.4 | 55.3 |
Government debt reaction: 10-year Treasuries yields soared to 5.11% (highest since 2007), and 5-year yields settled at 5.00%. The situation was worsened by a weak Treasury auction and Federal Reserve Governor Michael Barr's statement on the need for further policy tightening.
Stocks: Wall Street Sell-Off and Tokyo Surge
USA: Wall Street was hit by a wave of declines — 10 out of 11 S&P 500 sectors fell (−0.7%). Nasdaq lost −1.1% (Alphabet −4.68%), and the small-cap Russell 2000 plunged −1.6% under pressure from high rates. The only sector in the green was energy (+0.89%).
Europe: Euro Stoxx 50 declined by −0.4%. Banks (Allianz −3.8%, Deutsche Bank −2.6%) and automakers were under pressure amid expectations that the ECB will continue raising rates.
Asia: Japan's Nikkei 225 rose +1.1% (65,631) after holidays amid the AI boom (SoftBank +5.4%). China and Hong Kong slipped for the second day in a row due to expensive oil and a strong dollar (Lenovo −3.7%, SMIC −1.8%).
Commodities and Politics: Oil Above $103 and Xi Jinping's Visit
Oil rebound: Brent crude rose to $103.6 (+0.6%). Iranian President Masoud Pezeshkian stated that Tehran will not succumb to threats and will continue restricting shipping in the Strait of Hormuz. Prices are restrained by Saudi Arabia's export development through alternative pipelines.
Gold under pressure: Prices remain below $4,300 (around $4,277.69). High yields on risk-free bonds (5.11%) make holding the precious metal less attractive.
US-China summit: Xi Jinping arrived in Washington for the first time in 11 years. The agenda with Trump includes trade, tariffs, AI, and the rare metals conflict. Markets nervously watch prospects for a trade truce.
Events Calendar: Negotiations and Regulators
During the release of key macroeconomic data and regulators' rate decisions, a blackout period applies (±3 minutes). Opening, closing, and editing order parameters are unavailable.
| Event | Details and Expectations |
|---|---|
| Thursday (09/24) | Trump and Xi Jinping meeting; interest rate meetings of SNB (Switzerland) and Banxico (Mexico). |
| Friday (09/25) | US PCE inflation — the Fed's core benchmark for the rate decision at the October 28 meeting. |
Summary: This material is for informational purposes only and is not investment advice. The key focuses of the day are the outcomes of the US-China leaders' meeting and preparation for tomorrow's release of the PCE inflation index.