Breaking: FOMC officials acknowledged inflation remained elevated

• Global markets rallied and government bond yields fell after the U.S. Treasury Department announced it would double the amount of debt it can buy back from investors. • This strategic move aims to reduce stress among bond investors by managing the supply of government debt more effectively.

• The Federal Reserve released the minutes from the Federal Open Market Committee (FOMC) meeting held on July 28–29, 2026. • The document provides a detailed record of the discussions and deliberations regarding U.S. monetary policy during the two-day session.

• Long-term U.S. Treasury yields surged to their highest levels since 2007 on Tuesday, triggering a significant bond market sell-off. • In response to the volatility, the Treasury Secretary doubled the government's buyback of debt to stabilize the market.

• India has replaced Indonesia as the least-preferred stock market in Asia, reflecting growing caution among fund managers toward the country's equities. • A survey conducted between August 7 and 13 of 98 fund managers overseeing $272 billion in assets found India's stocks to be among the region's worst performers this year.

• Asian stock markets trended upward on Thursday, with South Korea leading the gains across the region. • The rally was triggered by the announcement of a US Treasury buyback plan, which has positively influenced bond yields.

• Singapore, Japan, and Hong Kong are currently reshaping global wealth migration patterns as of 2025, while outflows from China and India have begun to slow. • The shift indicates that global capital is increasingly prioritizing regulatory clarity, institutional credibility, and stability over simple tax incentives or growth projections.

• India has become the least-favoured market in the Asia-Pacific region among fund managers, ranking below China, Indonesia, and the Philippines. • The lack of an AI-driven investment play and weak growth projections are cited as the primary reasons for the current wariness.

• European gas prices have surged by 120% in 2026, leaving the region highly vulnerable to a costly winter due to low storage levels and supply risks. • While France, Italy, and Spain are responding quickly to these shifts, the Netherlands is experiencing almost immediate price pass-through.

• Global bonds stabilized on August 20, 2026, after the U.S. Treasury doubled long-bond buybacks, which lowered yields and put downward pressure on the U.S. dollar. • Brazil's central bank (Copom) unanimously cut the Selic rate by 25 basis points on August 5, bringing it to 14.00% following a series of four consecutive quarter-point reductions from a 15.00% peak.

• The People's Bank of China maintained its Loan Prime Rates (LPRs) overnight, keeping the 1-year rate at 3.0% and the 5-year rate at 3.5%. • This decision aligns with market expectations and follows the stability of the 7-day reverse repo rate, which has seen no recent adjustments.

• The CAC 40 closed at 8,501.91 points on Wednesday, marking a slight decline of 7.45 points (0.088%) from the previous day. • The dip was driven by a broader semiconductor selloff, specifically impacting STMicroelectronics, which weighed down both the French and Italian (FTSE MIB) markets.