Market Highlight 20.08.2026

The USD weakened sharply by 0,88% against major currencies on Wednesday night after the U.S Treasury Department announced plans to double its buyback operations to support liquidity in long-dated Treasuries. Specifically, the Treasury will double the size of its buybacks of 10- to 30-year Government bonds to at least 4 billion USD per operation. The increase from the previously planned 2 billion USD will apply to both the 10- to 20-year and 20- to 30-year maturity segments. The intervention will take effect from 9/9 to 4/11 in an effort to contain, at least temporarily, the rise in yields that has concerned global investors. Earlier, the 30-year Treasury yield had climbed to its highest level since 2007 amid concerns over escalating tensions in the Middle East and the deterioration in U.S public finances. Higher bond yields push up borrowing costs, placing pressure on households, businesses, financial markets, and the federal budget. Total U.S public debt surpassed 40 trillion USD on Wednesday.

This marks the second time this month that U.S Treasury Secretary Scott Bessent has intervened in an attempt to limit market volatility, following coordinated U.S - Japan intervention in the foreign exchange market earlier in August to reverse the yen’s decline to a 40-year low against the USD. The EUR rose by 0,78% last night to 1,1679 against the USD, its highest level in more than 2,5 months, while the JPY also strengthened by 0,7% to 158,04 per USD. Brent crude rose by 0,66% to 91,62 USD/barrel as tensions in the Middle East continued to escalate.

Interbank USD/VND continued to trade around the 26.180 area for the second consecutive day. The SBV raised the central rate by a further VND 18 yesterday, lifting the effective daily ceiling to 26.877.

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