Market Review August 20: US Treasury Halts Bond Decline, Brent at $92, Gold Tested $4,525
Global financial markets on August 20, 2026, are partially recovering after several days of decline. Stocks were supported by the US Treasury's decision to increase the volume of long-term government bond buybacks. Treasury yields fell,
Global financial markets on August 20, 2026, are partially recovering after several days of decline. Stocks were supported by the US Treasury's decision to increase the volume of long-term government bond buybacks. Treasury yields fell, the dollar dropped to a two-and-a-half-month low, and Asian markets moved into growth. Meanwhile, oil prices have risen for the fifth consecutive session amid uncertainty surrounding the Strait of Hormuz.
Stocks Break Downtrend: US Treasury Supports Long-Term Debt
USA: Following trading on August 19, indices ended a three-day downtrend. The US Treasury announced a doubling of bond buyback volumes (10–30 years) from $2 billion to at least $4 billion per operation starting September 9. This eased pressure on technology companies. Futures on August 20 continue modest gains (Nasdaq 100 +0.4%).
Europe and Asia: Asia is confidently rallying driven by IT and financial sectors (MSCI Asia-Pacific +2%, Nikkei 225 +1.4%, Hang Seng +1.2%). The National Bank of China kept base rates unchanged (LPR 1Y — 3%, 5Y — 3.5%). In Europe, Euro Stoxx 50 is down 0.2% — the energy crisis weighs on banking and industrial sectors.
Brent Approaches $92, Gold Corrects After Peaking at $4,525
Oil: Prices rise for the fifth consecutive session: Brent at $91.97, WTI at $86.00 (highest since late July). Iran's statements about closing the Strait of Hormuz, freezing UAE-Iran ties, and a drop in shipping outweigh the increase in US crude oil inventories by 4.4 million barrels.
Precious Metals and Currency: The dollar index DXY fell to a 2.5-month low (98.87). Gold is taking profits after surging to a historic peak of $4,525.79 per ounce: spot around $4,488 (-0.7%), futures at $4,546, silver at $66.90.
Treasuries Retreat from Highs, Fed Minutes Maintain Hawkish Tone
The yield on 30-year Treasuries fell to 5.19% (from 5.34%), and 10-year yields dropped to 4.64%. Fed minutes showed some participants were ready to raise rates due to inflation. The market estimates a 69% probability of holding the rate steady in September.
Key Contradictions in the Current Market:
Doubling long-term bond buybacks cooled the bond market, but record debt and expensive oil keep inflation risks elevated.
| Indicator / Factor | Status and Impact |
|---|---|
| US Oil Inventories | Unexpected increase of +4.4 million barrels offset by distillate shortages |
| Chinese Economy | LPR rates unchanged; focus on fiscal stimulus |
| Strait of Hormuz | Shipping traffic remains significantly below normal due to attack risks |
Main takeaway of the day: The US Treasury's decision to increase long-term bond buybacks temporarily calmed the debt market and allowed stocks to recover. However, fundamental risks remain. US national debt has exceeded $40 trillion, oil is approaching $92, and Fed minutes confirmed some officials' readiness to discuss a rate hike. Continued oil price increases or a new rise in bond yields could quickly reimpose pressure on stock markets, especially the technology sector.