Investment Daily: US Treasuries rose ahead of Fed policy decision
29 July 2026
Key takeaways
-
US stocks and Treasuries rose.
-
European stocks and government bonds rose.
-
Asian stocks declined.
Markets
US stocks mostly rose on Tuesday, despite a deepened global semiconductor/AI hardware sell-off. The S&P 500 edged up 0.2% amid divergent sector performances, while the tech-heavy Nasdaq fell 0.2%.
US Treasuries rose ahead of the Fed policy decision, amid lower oil prices, softer-than-expected consumer confidence and technology stock weakness. 10-year yields fell 4bp to 4.61%.
European stocks rose on Tuesday amid some upbeat earnings results and lower oil prices. The Euro Stoxx 50 rose 0.1%. The German DAX gained 0.4% and the French CAC was up 0.6%. In the UK, the FTSE 100 closed 0.8% higher.
European government bonds rose. 10-year German bund yields fell 3bp to 3.10% and 10-year French bond yields fell 4bp to 3.88%. In the UK, 10-year gilt yields fell 6bp to 4.94%.
Asian stock markets declined on Tuesday, as semiconductor shares fell sharply. Korea’s Kospi dropped 10.8% and Japan’s Nikkei 225 lost 4.0%. Elsewhere, China’s Shanghai Composite fell 1.2% while Hong Kong’s Hang Seng bucked the regional trend and ended up 0.4%. India’s Sensex edged 0.1% lower.
Crude oil prices fell on Tuesday. WTI for September delivery settled 4.1% lower at USD79.3 a barrel.
Key Data Releases and Events
Releases yesterday
The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.
The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.
In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.
Releases due today (29 July 2026)
In the US, recent Fed comments have been hawkish, but soft June core CPI data materially lowers the likelihood of a July rate hike.
Explore ways to invest
Related Insights
Disclaimer
We’re not trying to sell you any products or services, we’re just sharing information. This information isn’t tailored for you. It’s important you consider a range of factors when making investment decisions, and if you need help, speak to a financial adviser.
As with all investments, historical data shouldn’t be taken as an indication of future performance. We can’t be held responsible for any financial decisions you make because of this information. Investing comes with risks, and there’s a chance you might not get back as much as you put in.
This document provides you with information about markets or economic events. We use publicly available information, which we believe is reliable but we haven’t verified the information so we can’t guarantee its accuracy.
This document belongs to HSBC. You shouldn’t copy, store or share any information in it unless you have written permission from us.
We’ll never share this document in a country where it’s illegal.
This document is prepared by, or on behalf of, Ä¢¹½ÊÓƵ Bank Plc, which is owned by HSBC Holdings plc. HSBC’s corporate address is 1 Centenary Square, Birmingham BI IHQ United Kingdom. Ä¢¹½ÊÓƵ is governed by the laws of England and Wales. We’re authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Our firm reference number is 765112 and our company registration number is 9928412.