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Investment Daily: US stocks fell amid higher Treasury yields

20 May 2026

Key takeaways

  • US stocks and Treasuries fell.
  • European stocks were mixed; government bonds fell.
  • Asian stocks were mixed.

Markets

US stocks declined on Tuesday amid higher bond yields and rate volatility. The S&P 500 fell 0.7%.

US Treasuries fell on renewed investor concerns over inflation and policy tightening risks. 10-year yields rose 8bp to 4.67%.

European stocks traded mixed on Tuesday as solid corporate earnings offset geopolitical and inflation worries. The Euro Stoxx 50 ended flat. The German DAX rose 0.4% and the French CAC edged 0.1% lower. The UK FTSE 100 was up 0.1%.

European government bonds fell. 10-year German bund yields rose 4bp to 3.19% while 10-year French bond yields climbed 5bp to 3.83%. In the UK, 10-year gilt yields gained 3bp to 5.13%.

Asian stock markets lacked clear direction on Tuesday as investors weighed ongoing geopolitical risks and higher sovereign bond yields, with tech stocks pulling back. Japan’s Nikkei 225 fell 0.4% while Korea’s Kospi dropped 3.3%. India’s Sensex also edged 0.2% lower. Meanwhile, Hong Kong’s Hang Seng and China’s Shanghai Composite rose 0.5% and 0.9% respectively.

Crude oil prices retreated on Tuesday. WTI crude for June delivery settled 0.8% lower at USD107.8 a barrel.

Key Data Releases and Events

Releases yesterday

No major releases yesterday.

Releases due today (20 May 2026)

Bank Indonesia is expected to hike policy rates to preserve its policy credibility in prioritising FX stability.

In the UK, headline inflation should be little changed as higher petrol prices are offset by a lower OFGEM energy price cap.

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