BOND RELIEF FADES AS OIL AND LONG YIELDS PRESSURE MARKETS

Developing story: Treasury yields, oil prices, stock indexes and Federal Reserve expectations may change as trading continues.

Global markets came under renewed pressure Thursday as U.S. government bonds sold off again after a brief reprieve, pushing long-term yields higher and weighing on stocks. Reuters reported that investors questioned whether the U.S. Treasury’s expanded bond-buyback operations would provide lasting relief from a rout that has shaken multiple asset classes.

The 30-year U.S. Treasury yield rose to about 5.22 percent after falling earlier, while the benchmark 10-year yield also moved higher, Reuters reported. Yields move inversely to prices, so the increase showed that investors were again demanding more compensation to hold long-dated government debt.

The Treasury’s pledge to buy back more longer-dated securities had briefly calmed markets, but analysts described the measure as a temporary support rather than a cure for deeper problems. Those problems include high U.S. borrowing needs, inflation risk, global debt supply and uncertainty over how much private capital will be required for AI infrastructure.

Oil added another source of strain. Brent crude rose more than 2.5 percent to about $93.95 a barrel as disruption around the Strait of Hormuz showed few signs of easing. Higher oil prices can support energy producers but pressure households, manufacturers, transport companies and central banks trying to control inflation.

The market reaction was uneven. The pan-European STOXX 600 slipped, S&P 500 futures were flat and an MSCI world stock index rose modestly after four straight losing sessions. Nasdaq 100 futures edged higher, helped by investor optimism that the AI growth story may withstand bond-market turbulence.

Currency moves reflected the same crosscurrents. The euro hit its highest level since May while the dollar index weakened. A weaker dollar can ease pressure on some emerging markets but may also reflect doubts about U.S. fiscal and rate stability.

Federal Reserve minutes added to the caution. Reuters reported that policymakers showed deeper concern about inflation, with several appearing ready to raise rates and many saying a hike would be needed if inflation does not move back toward the 2 percent target. That is a difficult message for markets hoping weaker data will prevent further tightening.

What is confirmed is that bond relief faded, long yields rose again, oil remained elevated and stocks struggled for direction. What remains unresolved is whether Treasury buybacks can prevent a deeper bond-market selloff or whether inflation, debt supply and energy risk force a broader repricing across global assets.

Fact-check date: August 20, 2026. Article type: News. Sources: Reuters; U.S. Department of the Treasury; Federal Reserve. Developing note: Treasury yields, oil prices, stock indexes and Federal Reserve expectations may change as trading continues.