The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0641 GMT - U.S. Treasury yields rise in Asian trade as sentiment stabilizes after a risk-off mood pushed Treasury yields lower on Monday. "The risk sentiment has seemingly stabilized overnight in Asian trading, and yields are 1-2 basis points higher compared to lows yesterday evening," Danske Bank's Joel Rossier says in a note. A potential mover of the day will be President Trump's State of the Union speech. "The recent tariff ruling and trade policy is likely to be addressed, along with other political priorities ahead of the midterm elections this fall," the senior analyst says. The U.S. Treasury will hold a $69 billion auction for two-year notes. The two-year Treasury yield is up 1.5 basis points to 3.454%, while the 10-year yield rises 1.7 basis points to 4.043%, according to Tradeweb. (emese.bartha@wsj.com)

0631 GMT - TD Securities takes profit on long positions in 10-year German Bunds, senior rates strategist Pooja Kumra says. TD entered their long at a yield of 2.86% in December at a time when markets were bringing forward expectations for a European Central Bank rate hike toward late 2026, she says. TD targeted a yield of 2.60% and exits the trade at 2.68%. The recent rally in global rates has been strong and primarily led by U.S. Treasurys but the strategist believes that fundamentals don't support further falls in yields. "However, we do not believe that the underlying fundamentals sufficiently support a dovish bias in rates," they say. Both hard data and surprise indicators remain resilient, while the supply pipeline weighs on term premia. (emese.bartha@wsj.com)

0614 GMT - French government bonds, or OATs, have seen a significant outperformance after the approval of the 2026 budget, keeping Societe Generale rates strategists "tactically optimistic." They see the glass half full, with attractive carry and volatility remaining subdued for the coming months, they say. The strategists shifted their stance on OATs from defensive to tactical longs on Jan. 22, triggered by the budget approval. "Our constructive view reflects diminishing political stress, at least until the run-up to the 2027 Presidential elections," they say. Fundamentals aren't the near-term driver, while medium-term fundamentals remain challenging, they say. "Markets would only react meaningfully to a cluster of rapid downgrades and otherwise view OATs as relatively attractive at current levels, without expecting a quick convergence toward Italy." (emese.bartha@wsj.com)

0607 GMT - From the Federal Reserve's perspective, the U.S.'s economic growth momentum looks fine but inflation is still too high, Comerica Bank's Bill Adams says in a note. Against this backdrop, the Fed can be expected to hold short-term rates steady until Chair Jerome Powell's term ends in May, the chief economist says. Economic growth will ride tailwinds in 2026 from lower rates, more government spending, the Fed's rate cuts last year and an improving housing market, he says. Further support is expected to come from the continuing artificial intelligence boom, and refunds of the reciprocal tariffs that the Supreme Court invalidated last week, he says. "The biggest downside risk to growth is from labor supply bottlenecks which could fuel a rebound of inflation," he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

February 24, 2026 01:41 ET (06:41 GMT)

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