Last updated: August 20, 2026, 12:36 AM ET
U.S. Stocks and Treasury Market Moves
U.S. stocks rose after the government said it would buy back more longer-dated bonds, easing pressure on a market that had pushed borrowing costs to their highest levels in nearly two decades. Treasury yields dove after the Treasury increased buybacks, with Moderna and Merck surging on mRNA cancer vaccine results. Gold held near $4,500, posting the biggest gain in six months after the Treasury Department made a surprise move to rein in long-term borrowing costs. Gold later declined in Asian trade amid focus on the minutes of the Fed’s July meeting, which revealed broader support for interest rate increases. Bets on long-bond ETFs spiked a day before the U.S. announced buybacks, raising questions about market timing. JPMorgan strategists warned that markets may view the Treasury’s surprise effort to curb long-term borrowing costs as lacking credibility, potentially pushing up the term premium and yields. Democratic lawmakers urged Federal Reserve Chairman Kevin Warsh to disclose any conversations he has had with President Donald Trump since taking over the central bank in May. The WSJ Dollar Index fell 0.8%, down three of the past four trading days. Asian stocks looked set to gain as pressure from the bond market eased after the U.S. Treasury unveiled plans to buy back longer-dated debt. Markets rallied as government bond yields fell and stocks rose on a move by the Treasury Department to double the amount of debt it can buy back from investors. Treasury yields can affect everything from auto and student loans to mortgages. The Nikkei rose 0.6%, tracking Wall Street’s gains. Bessent boosted bond buying as yields surged, signaling the Treasury Department’s willingness to intervene after yields hit nearly two-decade highs. Bond market volatility prompted Bessent’s Treasury action, with bonds seeing a sell-off on Monday followed by intervention on Wednesday. Investors see 10-year Treasury yields at 5% hurting EM Asia debt, as higher rates in the US will prompt investors to favor dollar assets over regional debt. Asian currencies were mixed against the dollar but may be buoyed by the U.S. Treasury Department’s announcement that it will buy back more of its longer-term bonds. The U.S. national debt hit $40 trillion as borrowing rose at a historic rate, despite Donald Trump’s vow to stabilize America’s public finances. Public spending surged despite Trump’s promises to restore fiscal order, with spending on the Iran war, tax cuts, and tariff refunds undermining deficit reduction efforts. The U.S. has reached a new borrowing milestone in its struggle to get hold of its finances. U.S. debt just topped $40 trillion, with Trump nominating a Kennedy ally to lead the F.D.A. in related developments. The S&P 500 climbed as Treasury buybacks calmed bond yields, with investors weighing the implications of sustained elevated borrowing costs.
Japan Fixed Income and Yield Moves
Japan’s 20-year government bond auction drew stronger demand than its 12-month average as elevated yields attracted investors and U.S. Treasury Secretary Scott Bessent’s fresh attempt to rein in borrowing costs reverberated through global markets. Japan’s 20-year bond auction faces a test as global yields surge, with the sale set to determine whether elevated yields are enough to lure buyers back to the long end. Japan medium-term bonds saw the largest foreign outflow since 2006 last month as persistent yen weakness fueled speculation of monetary policy tightening. Japan student-loan bonds hit a record high coupon, with the Japan Student Services Organization setting terms for a two-year bond that will pay the highest yield on record. The carry trade allure puts the Hong Kong dollar back on 7.85 watch as demand for carry trades pushes the currency toward the weak end of its trading band against the greenback. Financing costs for global investors making leveraged bets on SK Hynix Inc.’s South Korean shares have halved in recent weeks after the chipmaker’s U.S. listing and a brutal selloff in stocks linked to AI. SK Hynix may add another $130 billion to returns, with JPMorgan Chase & Co. forecasting additional shareholder payouts through next year. AIA Group reported 13% growth in new business value in the first half of this year, led by strong sales in key markets including Hong Kong and China. Hong Kong banks are turning to student housing as a property bright spot, with the aging Regal Oriental Hotel becoming a popular destination for bankers from some of the city’s top lenders. The PBOC moved to slow yuan gains with a weaker-than-expected fixing, signaling a desire for slower currency appreciation after the yuan climbed to its strongest against the dollar in over three years.
Commodities and Energy
Oil edged higher in early Asian trade amid lingering tensions in the Middle East, which could lead to more supply disruptions. Oil futures slipped 1.3% in early Asian trade as OPEC+ signaled output increases, while palm oil climbed to its highest level in about 20 months as rising biofuel demand and mounting production risks from the strengthening El Niño underpin prices. Chinese refiners snapped up Iraqi crude as more barrels exit the Persian Gulf, underscoring the resilience of oil exports from the region despite persistent threats to shipping. Corn futures topped the $5-a-bushel mark for the first time in 18 months as weaker-than-expected U.S. crop tour results add to global supply concerns for the staple grain. Iron ore trader Radiant World came under investigation by Singapore’s police after receiving reports about the firm’s activities. Fortescue Ltd. saw its full-year profit fall despite buoyant iron ore prices as China’s property slowdown and negotiations with the country’s state-backed buyer persisted.
Corporate Earnings and Deals
Moderna shares nearly tripled after its melanoma shot, developed with Merck, delivered positive outcomes in a late-stage trial, with the drugmaker’s cancer treatment leading to a share price surge. Hudson River posted an $11.4 billion trading windfall as it seized on market tumult, benefiting from swings in AI stocks and volatility triggered by the Iran war. BlackRock and Oaktree Capital Management took over a firm that provides lighting, rigging, and other services for Hollywood productions, wiping out as much as $900 million in debt. Carlyle joined a $1 billion investment round in missile startup Castelion, which also included JPMorgan Chase and Andreessen Horowitz, valuing the hypersonic munitions maker at $13 billion. Stripe is paying $7 billion for Open Router, a move described as a bet on a future where users turn to a mix of AI models. Coty guided for revenue to decline by a low- to mid-single-digit percentage as consumers become increasingly selective with their purchases, despite resilient demand for beauty overall. L3Harris CEO Chris Kubasik was ousted after an investigation into conduct with a subordinate, with women at the company having shared concerns about his behavior years earlier. Spirit flight attendants fought Google’s $10 million data bid for AI, seeking assurance that their confidential information would be removed from the sale of the defunct airline’s digital records. Pharmaceutical chiefs are always hunting for drugs to replace expiring blockbusters, but shopping hungry can lead to expensive M&A mistakes. Australian banks face a review of lending practices as credit slows, with the prudential regulator monitoring to ensure that slowing credit growth does not lead to riskier loans. Australia’s unemployment rate unexpectedly rose in July, supporting the Reserve Bank’s view that the labor market is likely to gradually loosen and prompting traders to pare bets on another interest-rate hike. India’s new listings sparked a surge as a gauge of recent BSE mainboard listings climbed 16% this year to a record, even as the Nifty 50 extended its losing streak. India’s market regulator banned a Mauritius-based unit of JPMorgan Chase & Co. from the capital market over alleged manipulative trading in the South Asian nation’s newly introduced auction-based system. The Star 50 index is becoming the stock index that matters as investors look to track China’s hottest companies, shifting focus away from traditional benchmarks. Chinese humanoid robot sales rely on government-backed training centers that sell training data back to robot makers. CK Hutchison filed arbitration against Panama, seeking $1.5 billion in damages over the loss of its investments in two ports on the country’s strategic canal route, escalating a dispute caught up in U.S.-China tensions. CK Hutchison seeks $1.5 billion in Panama port arbitration, having commenced international proceedings over the loss of investments in two ports. The RBI’s net short dollar position remains “very manageable,” according to Governor Sanjay Malhotra, citing earlier liquidity swaps and recent measures to bolster the balance of payments. Trump opened the door to Hyperliquid as the U.S. pulls crypto trade onshore, saying regulators are working to bring the fast-growing platform into the country. Trump urged a crypto-friendly bill after an industry meeting, calling on Congress to pass a major cryptocurrency bill that would tilt regulation in the industry’s favor. Trump proposed reviving the Keystone XL pipeline, though the bilateral relationship with Canada has soured significantly since the project was first proposed two decades ago. Trump threatened economic pain for countries that help Iran, though he did not specify what actions he would take and has on other occasions abandoned threats to dramatically escalate the war. Trump will appear on radio with Michael Cohen, his onetime nemesis, in a sign of rapprochement between the president and his former fixer. Trump saw more of his chosen candidates lose Republican primaries, eroding his winning record and raising new questions about his hold over the party’s voters. Trump faced an emphatic rebuke of the hard right in Wyoming’s G.O.P. primaries, where the Wyoming Freedom Caucus’s candidates were rejected from the governor’s mansion to the Legislature. Trump officials scrapped an effort to recruit Pentagon lawyers to represent migrant children, amid mounting confusion about how the administration is protecting the rights of unaccompanied minors. Trump threatened economic pain for countries that help Iran, though he did not specify what actions he would take and has on other occasions abandoned threats to dramatically escalate the war. Trump will appear on radio with Michael Cohen, his onetime nemesis, in a sign of rapprochement between the president and his former fixer. Trump saw more of his chosen candidates lose Republican primaries, eroding his winning record and raising new questions about his hold over the party’s voters. Trump faced an emphatic rebuke of the hard right in Wyoming’s G.O.P. primaries, where the Wyoming Freedom Caucus’s candidates were rejected from the governor’s mansion to the Legislature. Trump officials scrapped an effort to recruit Pentagon lawyers to represent migrant children, amid mounting confusion about how the administration is protecting the rights of unaccompanied minors.
Geopolitics and Policy
North Korean officials dismissed reduced drills between the U.S. and South Korea, with Kim Yo-jong saying she was “unaware” of any communication with Washington, contradicting President Trump’s claim her brother had responded to his outreach. The Missouri congressional map may be used in the midterms after a judge approved the redrawn version, marking a win for Republicans pushing to maintain their narrow control of the U.S. House. Alabama Democrats are trying to harness Black anger over the Supreme Court’s weakening of the Voting Rights Act and Republican redistricting. Australia said it is “outraged” that Israel failed to charge any soldiers responsible for the 2024 killing of an Australian aid worker, with Canberra planning to formally protest the decision. The UAE imposed a total embargo on transactions with Iran, marking a significant shift in the Gulf state’s economic ties with its most important regional trading partner. The Congo Ebola outbreak is spreading rapidly beyond the main epicenter in North Kivu, overwhelming treatment capacity and putting pressure on contact-tracing efforts. Mamdani sued the City Council over $10,000 bonuses to teachers’ aides, with New York City saying the Council’s legislation violates collective bargaining law. Columnist Ross Barkan apologized amid a plagiarism scandal, saying he had “never intended to crib from anyone’s work.” Hayden Panettiere’s death at age 36 was investigated by the D.E.A., with local police saying there is no evidence of foul play. Harry and Meghan will move back to the U.K. after six years in the U.S., remaining non-working royals as their relations with King Charles remain strained. Hawaii is chasing the startup wave to replace stalled tourism, with state officials believing high-tech enterprises can seed new industries and keep skilled workers from fleeing to the mainland. Tata Sons chairman stepped down amid family control issues, highlighting the challenges facing India’s family-founded conglomerates. The Tata Sons leadership shake-up underscores the enduring sway of founding families across Asia’s businesses. Trump threatened economic pain for countries that help Iran, though he did not specify what actions he would take and has on other occasions abandoned threats to dramatically escalate the war. The U.S.-Canada trade draft piles pressure on Mexico to match terms, catching Mexican officials off guard as Canada’s preliminary deal with the U.S. raises questions about months of engagement. The auto and transport sector saw BRP tariff headwinds and Cargojet’s strategy in focus during recent market talks. Tech, media, and telecom dominated market discussions, with Canada’s digital policies and SK Hynix among the latest topics. The Chinese reusable rocket milestone by private company Land Space could put China closer to challenging SpaceX’s dominance in lower-cost spaceflight.