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

0846 ET - Bonds sell off around the globe and yields rise as President Trump says he's done negotiating with Iran while hostilities flare up once again over the Strait of Hormuz. Oil prices jump more than 4% and inflation expectations edge higher. The WSJ Dollar Index is flat following a sharp increase overnight when Trump made his comment in Ankara. Fed minutes this afternoon will be scrutinized to hints on how hawkish the central bank is leaning. The 10-year Treasury yield is at 4.565%, up from yesterday's 4.529% settle. The two-year rises to 4.195% from 4.161%. Both are off overnight highs. (paulo.trevisani@wsj.com; @ptrevisani)

0824 ET - Markets could face higher volatility for the remainder of 2026 as oil prices rise and supply falls, Algebris Investments' Gabriele Foa says in a note. Renewed U.S.-Iran attacks and President Trump's announcement that the Iran ceasefire is over raise fresh concerns about a potential oil-supply shock. Higher oil prices, lower global oil supply and renewed instability in interest rates could cause markets to be more volatile, Foa says. (miriam.mukuru@wsj.com)

0812 ET - The European Union's vote to approve the bloc's trade agreement with Mexico is an important step, especially for Germany, Hildegard Mueller, president of the German Association of the Automotive Industry, says. "About 70% of all jobs in our industry are supported by exports. That is the foundation of our prosperity," Mueller says. With the future of the U.S.-Canada-Mexico trade deal facing uncertainty, Mueller says that Stronger economic cooperation between Europe and Mexico sends a clear signal of stability, diversification, and resilient trans-Atlantic value chains. With the approval, a major hurdle has been cleared, she says. It is now crucial to move forward swiftly with the remaining procedures at the European and national levels, she adds. (nina.kienle@wsj.com)

0808 ET - The Swedish krona is looking cheap as low interest rates continue to undermine the currency, Societe Generale's Kit Juckes says in a note. "In real effective terms, the krona is 6% above its 2023 lows, but it has lost 18% in real terms over the last 20 years." Data on Wednesday showed the consumer price index with fixed interest rate eased to 1.3% in June, arguing against the Riksbank raising rates. However, growth accelerated to 3.9% in May. Sweden's economic outperformance relative to the eurozone could attract capital inflows and eventually have an impact on inflation, he says. The euro trades flat at 11.0564 krona after earlier reaching a one-week high of 11.0968, LSEG data show.(renae.dyer@wsj.com)

0725 ET - Yields on U.K. 10-year government bonds, or gilts, jump to their highest level since May 21 due to inflation concerns as U.S.-Iran tensions flare up again. President Trump announced on Wednesday that the Iran ceasefire deal is over, causing oil prices to advance and inflation concerns to return. Investors are also worried about the state of future U.K. public finances ahead of the appointment of a new leader after British Prime Minister Keir Starmer said in June he would step down. Andy Burnham, the frontrunner to succeed Starmer, has announced ambitious plans that could make it difficult for the government to maintain strict fiscal rules, Ebury's Matthew Ryan says in a note. Ten-year gilt yields hit a 6.5-week high of 4.960%, Tradeweb data show. (miriam.mukuru@wsj.com)

0609 ET - The cost of euro-denominated credit default protection climbs due to risk-off sentiment as U.S.-Iran tensions escalate. The U.S. fired airstrikes on Iran on Tuesday, raising concerns about renewed Middle East conflict, and Trump said Wednesday that the ceasefire was over. The fresh attacks are causing investors to "reassess geopolitical risks after several weeks of pricing in a smooth path toward de-escalation," Capital.com's Daniela Hathorn says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 5 basis points to 247 bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0542 ET - Germany's recent reform package is viewed as a positive step by companies, though many argue they could go further, Marion Muehlberger and Ursula Walther at Deutsche Bank say in a note. Last week, the government outlined a package of tax and pension reform while cutting red tape and introducing more flexible labor laws. The move is likely to boost corporate sentiment and improve Germany's economic competitiveness, the analysts say. Still, business associations noted a lack of reforms relating to wage costs and social security contributions, corporate taxation, and greater flexibility in working hours, they say. Moving forward, the government's ability to carry out reforms will remain in focus. "Swift implementation over the course of autumn is key," they say. (don.forbes@wsj.com)

0533 ET - Sterling falls as risk sentiment weakens after President Trump said the ceasefire with Iran was over following fresh strikes between the two sides. "For me, I think the deal is over, I don't want to deal with them anymore," Trump told reporters at a NATO summit in Ankara on Wednesday. Trump's remarks came after the U.S. and Iran traded blows Tuesday, ignited by Iranian attacks on ships near the Strait of Hormuz. Sterling falls 0.2% to a one-week low of $1.3319, according to LSEG. The euro rises 0.2% to an intraday high of 0.8555 pounds, having hit a one-year low of 0.8531 Tuesday.(renae.dyer@wsj.com)

0459 ET - Bitcoin extends its losses after President Trump said the ceasefire with Iran is over following renewed attacks between the two sides. Speaking at the Nato summit in Ankara, he said as far as he was concerned "it's over" and it was a waste of time dealing with Iran. Trump's comments add pressure on bitcoin which was already weaker after the U.S. struck sites along Iran's coast and blocked its ability to sell oil legally on Tuesday while Iran responded with counterattacks. Bitcoin falls 2.5% to an intraday low of $61,836, according to LSEG.(renae.dyer@wsj.com)

0458 ET - A selloff in U.S. and eurozone government bonds accelerates after U.S. President Trump says the ceasefire with Iran is over. Yields had already hit four-week highs earlier in response to military escalation between the U.S. and Iran. Trump's announcement push yields up further as oil prices also increase, with Brent rising 5% to $77.89. The 10-year U.S. Treasury yield rises 4.8 basis points to 5.577% while the 10-year German Bund yield rises 8 basis points to 3.064%, according to Tradeweb. (emese.bartha@wsj.com)

0451 ET - Yields on U.K. government bonds, or gilts, extend an earlier rise, climbing to their highest level since June 10 after U.S. President Trump says that the ceasefire deal with Iran is over. The announcement pushes Brent crude price up further, raising inflation risk and the possibility of the Bank of England increasing interest rates in the coming months. Ten-year gilt yields climb 11 basis points to a high of 4.945%, Tradeweb data show. (miriam.mukuru@wsj.com)

0437 ET - The dollar turns higher after President Trump said the U.S. and Iran ceasefire is over after the two sides exchanged renewed military strikes. Speaking at the Nato summit in Ankara, Trump said "as far as I'm concerned, it's over" and that Iran was led by "sick people." His comments came after the U.S. struck sites along Iran's coast and blocked its ability to sell oil legally on Tuesday in response to Tehran's recent attacks on ships near the Strait of Hormuz. Iran responded with counterattacks. The dollar benefits from safe-haven flows and higher oil prices due to America's position as a net oil exporter. The DXY dollar index rises 0.1% to 101.169. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 08, 2026 08:47 ET (12:47 GMT)

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