Sunrise Market Commentary - ActionForex

• The US Treasury announced it is at least doubling the size of liquidity support buyback operations for longer-dated nominal coupon securities (10y to 20y and 20y to 30y). • The maximum size per operation will increase from $2 billion to at least $4 billion.

• Major European stock indexes opened with mixed results on Wednesday as investors reacted to new inflation data. • Market participants are specifically analyzing the latest consumer and producer price index (CPI) reports from the United Kingdom and the broader Eurozone.

• Federal Reserve Governor Lisa Cook delivered a speech focusing on the current economic outlook for the United States and Alaska. • The address analyzed key macroeconomic indicators and regional trends to assess the stability and growth trajectories of these economies.

• The U.S. 30-year Treasury yield has surged to 5.33%, reaching its highest level in 19 years and triggering a global bond market selloff. • This spike is driven by mounting concerns over persistent inflation and massive government spending, which is subsequently creating volatility in equity markets.

• Indian stock markets opened strongly on August 20, 2026, with the Sensex jumping over 500 points and the Nifty 50 climbing above 24,200. • The rally was driven by improved global risk appetite, as US indices (Dow, S&P 500, and Nasdaq) gained up to 0.22% and the VIX fell by 6%.

• India has replaced Indonesia as the least-preferred stock market in Asia, according to the latest fund manager survey conducted by Bank of America. • The decline in preference is attributed to high market valuations, weak growth projections, a lack of structural reforms, and limited exposure to AI-driven opportunities.

• A Bank of America survey of fund managers reveals that India has become the least-favoured stock market in Asia and one of the world's worst performers this year. • While Taiwan and Japan remain the most preferred markets, the share of managers underweight on Indonesian equities dropped from 32% in July to 27%.

• The US Treasury has announced plans to increase its purchases of long-term government bonds to stabilize the financial market. • This strategic shift comes as Washington expresses growing concern over a sharp rise in borrowing costs that could pressure the economy.

• Global bond yields are rising, creating a "bond rout" that increases borrowing costs for investors and consumers. • A significant divergence has emerged between the bond market, which signals growing economic anxiety, and the stock market, which remains largely optimistic.

• U.S. Treasury yields for 10-year and 30-year notes plunged on Wednesday following the Treasury Department's announcement of expanded liquidity-support buybacks. • The department plans to double the scale of these buybacks to improve market functioning and ensure smoother trading of older securities.

• The U.S. 30-Year Treasury yield reached a 19-year high, hitting 5.30% as of August 17. • This surge was driven by mounting concerns over inflation, increased debt issuance, and rising oil prices.