Market Information Thursday 20 August 2026

The US Treasury announced it would at least double purchases of long-dated government debt, increasing buybacks from $2 billion to at least $4 billion, in an effort to support liquidity and calm a bond market sell-off. Long-term Treasury yields recently reached their highest levels since 2007, reflecting investor concerns about inflation and the growing US public debt burden. The move highlights the importance of keeping borrowing costs contained, as higher yields directly affect financing costs for households, businesses and governments.

China is expected to leave its benchmark lending rates unchanged for a 15th consecutive month, with the one-year and five-year loan prime rates likely to remain at 3.0% and 3.5%, respectively. Despite weak economic indicators, including softer industrial activity, retail sales and credit demand, policymakers appear to be focusing on fiscal measures and infrastructure spending rather than additional monetary easing. This approach aims to support growth while preserving profitability within the banking sector, where net interest margins remain near record lows at 1.41%.

Wheat prices have climbed to near three-year highs as escalating attacks on Black Sea ports and shipping routes threaten grain exports from Russia and Ukraine, which together account for roughly 30% of global wheat supply. Analysts estimate up to 86 million tonnes, or about 17% of global cereal exports, could be disrupted, raising concerns about a renewed surge in global food inflation. The supply shock is being compounded by drought conditions, fertiliser shortages and logistical constraints across key export routes.

The 6M Euribor increased with 1 basis point to 2.70% compared to previous business day. The 10Y Swap increased with 1 basis point to 3.29% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.