The Yield On 10‑year US Treasury Bonds Rises To A 19‑year High

The Dow Jones (US30) fell by 0.31%, the S&P 500 (US500) slipped 0.03%, while the Nasdaq (US100) closed slightly higher at 0.01%. On Thursday, US equity indices ended the session without a unified direction, as renewed volatility in bond and energy markets limited buying activity. The yield on 10‑year US Treasuries climbed above 5.15%, settling near 5.1%, its highest level since 2007, while 30‑year yields reached levels last seen in 2004. The technology and AI sectors showed mixed performance, influenced by corporate news and active debt issuance to finance infrastructure expansion. Meta shares rose 4.5%, and Alphabet gained 1.3%, supported by positive investor reaction to presentations of new devices and AI agents.

Mexico’s Central Bank (Banxico) unanimously kept its benchmark interest rate unchanged at 6.50% at its September meeting, in line with market expectations. The regulator noted that the pause in the easing cycle reflects the need to account for multiple factors: peso dynamics, the desynchronization of economic cycles between Mexico and the US, and the accumulated effects of previous monetary tightening. The decision was made against clear signs of cooling in the national economy. According to Banxico, GDP growth continued to slow in the third quarter.

European equity markets closed lower on Thursday amid another surge in energy prices and the accompanying rise in borrowing costs. Germany’s DAX (DE40) fell 0.57%, France’s CAC 40 (FR40) declined 0.52%, Spain’s IBEX 35 (ES35) dropped 0.30%, and the UK’s FTSE 100 (UK100) slipped 0.24%. The continued rise in sovereign‑bond yields exerted additional pressure on corporate shares, particularly in the banking and technology sectors: UniCredit and Deutsche Bank fell by 1.6% and 2.3%, respectively. Meanwhile, a series of European central‑bank meetings concluded. The Swiss National Bank (SNB) kept its base rate unchanged and reaffirmed its decision to abandon regular interventions in the franc, restoring stability to Swiss financial institutions. Sweden’s Riksbank adopted a more hawkish stance, holding rates steady despite easing expectations, while Norway’s Norges Bank opted for a direct rate hike to combat inflation.

Crude oil prices stabilized near $95 per barrel, retreating from the $97 highs amid emerging signs of potential de‑escalation in the Persian Gulf. Markets reacted positively to reports that US and Iranian negotiators are discussing an agreement to lift the maritime blockade on tankers in the Strait of Hormuz and partially ease US sanctions in exchange for restored exports. Additional political context came from the US Senate’s rejection of a resolution to end military operations against Iran, maintaining diplomatic uncertainty but leaving Washington room for maneuver.

US natural gas prices rose to $3.2 per MMBtu, reaching their highest level since early July following the weekly EIA report. Gas storage injections for the week ending September 18 totaled 53 billion cubic feet, significantly below last year’s level (77 bcf) and the five‑year average (76 bcf).

In Asia, Japan’s Nikkei 225 (JP225) rose 0.76%, China’s FTSE China 50 fell 1.58%, Hong Kong’s Hang Seng (HK50) declined 0.29%, and Australia’s ASX 200 (AU200) closed 0.72%.

The offshore yuan (CNY) weakened to 6.71 per dollar on Friday, ending the week lower as investors assessed the results of the Washington summit between Donald Trump and Xi Jinping. A key topic at the White House meeting was regulating AI competition: the US president reiterated his opposition to strict AI limits, while the Chinese leader emphasized both countries’ shared responsibility to maintain human oversight of emerging technologies. On the geopolitical front, Xi Jinping publicly urged the US to oppose Taiwanese independence, seeking to push Washington toward revising its long‑standing position.

• S&P 500 (US500) 7,704.13 -1.90 (-0.03%)

• Dow Jones (US30) 51,349.98 -161.61 (-0.31%)

• DAX (DE40) 25,266.53 -144.10 (-0.57%)

• FTSE 100 (UK100) 10,679.99 -25.27 (-0.24%)

• USD Index 101.30 +0.20 (+0.20%)

News feed for: 2026.09.25

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