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Investment Daily: US bonds fell on high energy prices, firm data and hawkish Fed rhetoric

25 September 2026

Key takeaways

  • US stocks and Treasuries fell.
  • European stocks and government bonds fell.
  • Asian stocks fell.

Markets

US stocks fluctuated on Thursday amid higher bond yields, with geopolitical developments in focus. The S&P 500 ended flat.

US Treasuries extended their declines amid higher energy prices, resilient macro data, and hawkish Fed official comments. 10-year yields rose 9bp to 5.20%.

European stocks closed lower on Thursday as high energy prices raised inflation fears. The Euro Stoxx 50 fell 0.4%. The German DAX lost 0.6% and the French CAC was down 0.5%. In the UK, the FTSE 100 ended 0.2% lower.

European government bonds weakened further. 10-year German bund yields rose 5bp to 3.60% and 10-year French bond yields climbed 3bp to 4.69%. In the UK, 10-year gilt yields ended 3bp higher at 5.38%.

Asian stock markets declined on Thursday amid higher oil prices and global bond yields. China’s Shanghai Composite fell 1.2%, while Hong Kong’s Hang Seng Index slipped 0.3%. Elsewhere, India’s Sensex dropped 1.7%. Japan’s Nikkei 225 rose 0.8% after returning from a three-day holiday.

Crude oil prices rose on Thursday amid lingering geopolitical uncertainty. WTI for November delivery settled 2.7% higher at USD94.6 a barrel.

Key Data Releases and Events

Releases yesterday

Germany’s IFO business confidence index rose to 89.9 in September from 88.8 in August, rising for the fifth consecutive month, despite persistent energy price shocks.

Releases due today (25 September 2026)

No major releases.

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