Asia Market Quick Take – 20 August, 2026

Earnings this week:

• Thursday - Walmart, Deere & Co., Ross Stores, Alibaba, Ping An Insurance, Pop Mart
• Friday - BJ’s Wholesale Club

FX:

• USD slumped broadly after the Trump administration unexpectedly pledged to at least double long-end US Treasury buybacks, reversing a rout that had pushed 10–30Y yields to their highest since 2007. The Bloomberg Dollar Spot Index fell as much as 0.8% to its weakest since May 12, driving gains across G10 and EM FX.
• USDCHF stand out as the biggest G10 mover, dropping 1.83% in the Swiss franc’s sharpest one-day rally since July 15 and almost twice the size of the next-largest move.
• USDJPY is nudging back to 158.34 after its 0.9% drop, with a clear break below 158 eyed as a trigger for deeper carry unwinds and potential BOJ intervention chatter.
• EURUSD is holding around 1.1675 after yesterday’s 0.87% surge, with options skew showing this is still largely a September Fed repricing story rather than a strong euro conviction, especially as the Iran-driven energy shock caps eurozone upside.
• GBPUSD sits just above 1.36 and EUR, GBP, AUD risk reversals continue to trade as a unified dollar view, underlining that local narratives are secondary to the US rates theme.

Commodities:

• Gold surged more than 4% to above $4,500 per ounce, its largest single-day gain in six months and its highest level since early June. The move was driven by the sharp fall in the dollar and long-end Treasury yields following the buyback announcement, with analysts noting the rally also reflects a growing market premium on US institutional and policy volatility.
• Brent crude held above $91 per barrel in early Asian trade, extending a four-day run of gains of more than 5%, as President Trump announced sweeping new economic measures against Iran and the UAE cut trade and financial ties with Tehran. The US is reportedly running a stealth military shipping corridor through the Strait of Hormuz, with roughly 10 million barrels per day transiting via the Omani route.
• Copper's historic LME squeeze continued to ease, with the cash-to-three-month backwardation falling to around $248 per metric ton from a peak of $545 earlier in the week, after Trafigura and other traders made significant metal deliveries to the exchange. Copper traded below $14,000 per metric ton.

Fixed income:

• The Treasury curve twist-flattened, the long end outperforming on an off-cycle buyback that at least doubled 10–30Y operations, while the front end lagged amid T-bill supply concerns. The 30-year yield fell approximately 10 basis points to 5.18%, having hit its highest level since 2007 earlier in the week. The 10-year yield fell 5.8 basis points to 4.647%, while the 1-year yield was little changed at 3.982%. The 5s30s spread tightened by approximately 7 basis points on the day.
• The $16 billion 20-year bond auction cleared at a yield of 5.204% — the highest since the sector was reintroduced in May 2020.
• UK Gilts outperformed on Wednesday after UK CPI matched estimates, with traders paring Bank of England tightening bets. The 10-year Gilt yield fell 2 basis points to 5.07%. German Bunds lagged, with a €3.77 billion 10-year Bund auction clearing at the highest average yield since 2011. Bond traders are increasingly positioning for a Fed pivot to rate cuts in 2027, even as long-end yields remain at multi-decade highs.

For a global look at markets – go to Inspiration.

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