The National Bank of Serbia has published its weekly overview of global financial market developments for 18–22 May 2026, describing a week driven by changing signals on US-Iran negotiations, Federal Reserve minutes that pointed to no urgency to cut rates, and softer euro area activity data. In the review, the euro fell 0.16% against the US dollar to 1.1611. US Treasury yields were mixed, with the two-year yield rising 5.1 basis points to 4.12% and the ten-year yield falling 3.5 basis points to 4.56%, as markets weighed higher energy prices, inflation risks and the possibility that further tightening could still be warranted if inflation remains above target. The overview also points to weaker euro area business activity, with the preliminary composite purchasing managers index for the euro area falling to 47.5, its lowest level since October 2023, while France’s composite index dropped to 43.5 and its services index to 42.9, both the lowest since November 2020. German government bond yields fell across the curve, leaving the two-year yield at 2.64% and the ten-year yield at 3.04%. Commodity prices declined, with gold down 0.65% to USD 4,515.02 per ounce and Brent crude down 5.24% to USD 103.54 per barrel. Among emerging markets, the review notes renewed pressure on Turkish assets after a court ruling heightened political uncertainty, and Poland’s CHF 885 million three-tranche bond issue, including a 10-year green bond.
National Bank of Serbia2026-05-27
National Bank of Serbia publishes weekly market review highlighting firmer Federal Reserve signals weaker euro area data and lower oil prices
The National Bank of Serbia published its weekly overview of global financial markets for 18–22 May 2026, highlighting shifting signals on US-Iran negotiations, Federal Reserve minutes indicating no urgency to cut rates, and weaker euro area activity data. The review notes modest euro depreciation against the US dollar, mixed moves in US and German government bond yields, and declines in gold and Brent crude prices. It also flags renewed pressure on Turkish assets after a court ruling and Poland’s CHF 885 million three-tranche bond issue, including a 10-year green bond.