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

0845 ET - The 2-year yield is rising as Brent crude crosses the $100-a-barrel threshold amid the escalating conflict in the Middle East. The U.S. military destroyed five Iranian oil tankers Tuesday, and Iran retaliated overnight with a ballistic-missile attack from Iranian territory into Jordan, with no casualties reported. The 2-year yield is at 4.43%, up from Tuesday's level of 4.40%. The 10-year yield is trading roughly at Tuesday's level of 4.81%. It's a light day for any major U.S. economic releases, and investors will be eyeing buyback details from the U.S. Treasury. (jessica.coacci@wsj.com)

0834 ET - President Trump's ban of Canadian imports covers only 0.25% of goods that Canadian firms send southbound, according to estimates from Stephen Brown of Capital Economics. Trump's tariff adjustments are also a wash, he says, as the new Canadian imports subject to a 50% duty are offset by other goods now exempt. Brown cites, for instance, the removal of the 50% levy on switchgear assemblies and cement from Canada, which he reckons is connected to America's push to build data centers. The economic damage is minimal, Brown says, but adds a weak 4Q is now a strong possibility. Brown's bigger worry is a sharply diminished likelihood of Washington and Ottawa resolving their trade conflict, and an increased risk that Trump withdraws from the US-Mexico-Canada trade treaty, or USMCA. (paul.vieira@wsj.com; @paulvieira)

0734 ET - U.A.E. banks remain well positioned to absorb potential capital outflows despite elevated regional geopolitical risks, S&P Global Ratings says. The banking system held about $247 billion in net external assets at the end of June, equivalent to roughly 42% of domestic loans and the strongest position among GCC banking systems. A large and diversified domestic deposit base and high-quality liquid assets provide an additional buffer, while banks' direct credit exposure to sectors most vulnerable to the conflict remains limited, S&P says. (farhan.rafid@wsj.com)

0729 ET - With a European Central Bank rate hike at this Thursday's meeting no longer in doubt, the central question is whether policymakers have both the willingness and the justification to tighten monetary policy even further, ABN AMRO's Christophe Boucher says. For now, more interest-rate hikes would remain pre-emptive, given the eurozone has yet to display clear evidence of significant second-round inflation effects, he says. "At the same time, higher long-term yields have effectively tightened financial conditions since the last ECB meeting." Nevertheless, the ECB will likely keep the door open for more potential tightening while avoiding excessive precision that could be interpreted as forward guidance, Boucher says. "Data dependency will remain the key message." (edward.frankl@wsj.com)

0726 ET - Qatar's fiscal deficit risks widening beyond Standard Chartered's 5% of GDP forecast for 2026 as constrained LNG exports weigh heavily on hydrocarbon revenue, the bank says. The second-quarter deficit widened to $5.8 billion from $0.2 billion a year earlier as government revenue fell 57%, while spending remained resilient. Standard Chartered says seasonal non-hydrocarbon receipts cushioned the shortfall and, without that support, the quarterly deficit would have approached $11 billion. Substantial sovereign assets and access to debt markets provide ample room for financing, it says. (farhan.rafid@wsj.com)

0720 ET - Lending growth at Gulf banks rebounds in the second quarter, suggesting the slowdown following the outbreak of regional conflict was relatively short-lived, Kamco Invest says. Gross lending at 55 listed GCC banks rises 2.6% from the previous quarter to a record $2.59 trillion, with all six GCC markets recording sequential growth. The recovery follows an eight-quarter low in lending growth in the first quarter. Aggregate net profit also reaches a record $17.7 billion, up 7.2% on year, showing continued resilience despite regional disruption. (farhan.rafid@wsj.com)

0717 ET - Saudi banks are increasingly relying on debt markets for funding as lending growth continues to outpace deposit growth, Kamco Invest says. The loan-to-deposit ratio at Saudi-listed banks remains above 100% for a third consecutive quarter, pointing to a structural funding gap in the sector. Saudi issuers raised $49.3 billion through bonds and sukuk in the first half of 2026, accounting for 48% of GCC issuance, as wholesale debt markets take a larger role in meeting funding needs, Kamco says. (farhan.rafid@wsj.com)

0707 ET - Qatar's budget deficit more than doubles in the second quarter as government revenue falls sharply, Ministry of Finance data show. The state records a deficit of 21.2 billion Qatari riyals ($5.8 billion), up from QR10.3 billion in the first quarter, while revenue drops to QR25.6 billion from QR37.8 billion. Spending is little changed at QR46.9 billion, versus QR48.1 billion in the previous quarter, pointing to weaker revenue as the main driver of the wider fiscal shortfall. (farhan.rafid@wsj.com)

0651 ET - Amazon's four-part sterling bonds issue, the company's first supply in the sterling market, looks attractive at current intial price talk, CreditSights analysts say in a note. Amazon's 3-year sterling bond has an initial price talk in the area of U.K. government bond yield plus 70 basis points, 6-year bond at U.K. government bond yield plus 90bps, 12-year bond at U.K. government bond plus 105 bps and the 19-year bond at U.K. government bond yield plus 110 bps. The pricing on the sterling bonds offers a good entry point to buy good quality credit investments, the analysts say. The Amazon sterling bonds are still at the premarketing stage, LSEG data show. (miriam.mukuru@wsj.com)

0633 ET - Saudi Arabia's economy contracts in the second quarter as a sharp decline in oil activity outweighs modest growth elsewhere, according to the General Authority for Statistics. Real gross domestic product falls 4.7% on year, with oil activities down 24.8%, while non-oil and government activities each grow 0.9%. The breakdown shows the downturn remains concentrated in the oil sector, with underlying non-oil activity continuing to expand despite regional disruption. (farhan.rafid@wsj.com)

0612 ET - Sterling edges higher as markets raise their bets on the possibility of the Bank of England increasing interest rates in the coming months. The BOE Governor Andrew Bailey said that U.K. inflation risks are "on the upside" during a presentation before parliament's Treasury Committee on Tuesday, causing investors to raise their expectations of a rate rise in 2026. Markets price in one BOE rate increase this year, and a total of three rate rises by July 2027, LSEG data show. Sterling trades at $1.3538, having climbed to a 13-day high of $1.3567 earlier in the session, LSEG data show. (miriam.mukuru@wsj.com)

0608 ET - The U.S. has so far benefited from both the dollar and Treasurys being safe havens regardless of fiscal concerns but this could now change, DNB Asset Management's Ingvild Borgen says in a note. "To date, the U.S. has benefited from the fact that both its currency and its government bonds are regarded as the ultimate safe havens in global financial markets," the portfolio manager says. "The U.S. has not faced the market discipline that typically accompanies irresponsible fiscal policy--a pressure long experienced by countries in Europe and emerging markets." One potential positive is that Treasury Secretary Scott Bessent has already suggested that the U.S. will be compelled to take measures to prevent the debt burden from continuing to rise, Borgen says.