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

1318 ET - Active global asset managers are adding more Canadian public-sector debt -- federal and provincial -- to their portfolios as the Treasury market faces questions about U.S. debt sustainability, says Tiago Figueiredo, economist at Desjardins Group. Investors "appear to be treating Canadian public-sector duration as a credible high-quality alternative to Treasuries, albeit with a much smaller market," Figueiredo says, adding the term premium embedded in longer-term government of Canada bonds is among the lowest in developed-world markets. He notes Canadian corporate bond allocations remain well below passive-benchmark weights. (paul.vieira@wsj.com; @paulvieira)

Hyperliquid's current market cap is only a fraction of other cryptocurrencies like BTC or ETH, at just over $18 billion. "Hyperliquid Hits Record as ETFs Inflows Continue -- Market Talk," at 11:53 a.m. ET incorrectly called the cryptocurrency ETF rather than ETH.

1203 ET - Bank of Canada's credibility to keep inflation at 2% remains in fragile territory after the post-pandemic price surge, and could take another hit should the conflict in Iran keeps energy prices elevated for a longer-than-expected period, says an analysis from Bank of Nova Scotia economists. Credibility weakens, they say, when inflation persistently deviates from the BOC's 2% target. If the conflict drags on and BOC credibility slips further, "inflation would become more persistent and rises more sharply, requiring materially tighter policy," the Scotiabank economists say. Scotiabank's economics team has been one of the few calling for BOC rate hikes by the end of 2026 due to underlying price pressures in the economy. (paul.vieira@wsj.com; @paulvieira)

1153 ET - Hyperliquid trades at new high over $74 before retreating back to $71. The token is coming off of a strong May, where ETFs debuted and have seen consistent inflows since, according to data from Coinglass. The performance of the nascent ETFs was "the most successful crypto launch on record relative to its size," according to analysts with 21shares. The firm says that nearly 0.8% of HYPE's market capitalization is covered in ETFs, outpacing other cryptos in the same time period from their ETF's inception. However, its current market cap is only a fraction of other cryptocurrencies like BTC or ETH, at just over $18 billion. (kirk.maltais@wsj.com) Corrections & Amplifications

This was corrected at 12:55 p.m. ET because it incorrectly called the cryptocurrency ETF rather than ETH. Hyperliquid's current market cap is only a fraction of other cryptocurrencies like BTC or ETH, at just over $18 billion.

1123 ET - Economists surveyed in May by the Bank of Mexico lowered their economic growth estimate for this year to 1.1% from 1.4% following a contraction in the first quarter. The downgrade brings the estimate in line with the central bank's own 1.1% forecast, which was lowered last week from 1.6%. Inflation expectations were little changed from the April survey, with CPI expected to end this year up 4.35% and core CPI seen up 4.22%, according to the median estimate of 43 analysts. GDP is seen growing 1.8% in 2027, with inflation ending next year at 3.84%. (anthony.harrup@wsj.com)

1117 ET - The weakness seen in major cryptocurrencies in the second half of May is expected to continue into June, Bitfinex analysts say in a note. "If seasonality follows the same pattern as previous bear market years, June is likely to be a negative month for cryptocurrency," the firm says. The analysts say that bitcoin appears to be following patterns seen in trading during 2018 and 2022 -- both considered bear-market years for the token. What could reverse this is if "institutional inflows return meaningfully" in June, Bitfinex adds. Bitcoin falls 3.1% to $71,345, while ethereum is down 2.1% to $1,963, XRP is down 3.5% to $1.28, and solana loses 2.9% to $79.48. (kirk.maltais@wsj.com)

1049 ET - Futures markets price in higher odds of an increase in U.S. interest rates this year as talks to reopen the Strait of Hormuz seem to fall through. Tehran is reported to have halted talks over alleged violations of a ceasefire agreement with the U.S. On the CME FedWatch tool, odds of a hike by December rise to 43% from 36% Friday, beating odds of a hold, which fall to 39% from 55%. Treasury yields and the dollar also rise as oil futures rally on the news. WTI crude is up 8% and the WSJ Dollar Index rises 0.3%. The 10-year Treasury yield is at 4.512%, back to last week levels. (paulo.trevisani@wsj.com; @ptrevisani)

1047 ET - Institutional investment in bitcoin ETFs has been on a streak of sizable outflows, according to data from Coinglass. On Friday, $125.3 million moved out of bitcoin ETFs, continuing a streak of outflows dating back to the middle of May. The weakness being seen while equities markets keep powering higher has investors thinking that the link between crypto and equities has eroded. Over $3 billion has been taken out of bitcoin ETFs in the past three weeks, says analysts with Bitfinex in a note. "The market became increasingly vulnerable to distribution-led selling pressure," says the firm. BTC is down 2.9% to $71,535, while ethereum falls 1.8% to $1,967. (kirk.maltais@wsj.com)

1008 ET - Treasury yields and the dollar jump higher as Iran is reported to be stopping talks to reopen the Strait of Hormuz following Israeli attacks on Lebanon against Hezbollah. Oil futures rise 7% on dwindling hopes of normalized supply lines. The WSJ Dollar Index rises 0.4%, after hovering around flat earlier. The greenback strengthens 0.4% against the euro and 0.3% versus the yen. The 10-year yield rises to 4.51% from 4.45% and the two-year is at 4.08, up from 4.03%. (paulo.trevisani@wsj.com; @ptrevisani)

0959 ET - Eurozone government bond and U.K. gilt yields jump on a report that Iran halts talks with the U.S. in protest at Israel attacking Lebanon. Iran's Tasnim news agency says on X that Iran will halt the exchange of talks and messages through the intermediary with the U.S. The 10-year German Bund yield rises 8.3 basis points to 3.012%; the French 10-year OAT yield is up 10 basis points at 3.636%; the 10-year Italian BTP yield jumps 11 basis points to 3.750%; and the 10-year gilt yield is up 8.2 basis points at 4.889%, according to Tradeweb. (emese.bartha@wsj.com)

0958 ET - Bitcoin falls to a seven-week low after Iran's state media reported that the country is halting talks with the U.S. Iran's Tasnim news agency said Iran would cut talks through mediators in protest against Israeli attacks in Lebanon. Bitcoin is also dented by news that Strategy sold the cryptocurrency last week for the second time ever. Strategy sold 32 coins for $2.5 million at an average of $77,135 each between May 26 and May 31, according to a Monday filing. Bitcoin falls to as low as $71,495, LSEG data show.(renae.dyer@wsj.com)

0943 ET - The Iran war looks set to remain a drag on the Japanese yen in coming months, Commerzbank's Volkmar Baur says as the yen falls to a one-month low against the dollar. Prices for fossil fuels could stay elevated, weighing on the Japanese economy's foreign trade balance, he says in a note. Furthermore, interest-rate differentials have moved against the yen as markets bet on the Federal Reserve and European Central Bank raising interest rates. "However, once the Iran conflict is resolved, the outlook for a stronger yen remains favorable," Baur says. The dollar rises to as high as 159.69 yen and Commerzbank expects it to reach 150 by December this year and 143 by December 2027. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 01, 2026 13:18 ET (17:18 GMT)

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