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

0558 GMT - Jefferies remains negative over France, "as we do not see any political party trying to credibly bring down budget deficits," global economist Mohit Kumar says in a note. Elections will be held in the spring of 2027, "and it is difficult to see fiscal austerity going into elections," he says. Jefferies also has concerns around demand for French government bonds from Asian investors. "Historically Asian investors have been big supporters of France, as for them the potential universe of European government bonds is Germany and France." Italy doesn't yet meet the rating criteria for a bulk of their portfolio, and countries like the Netherlands or Finland don't have large enough issuance sizes, he says. "So a 70-80bp pickup over Germany is a reasonable incentive to buy France during normal times." (emese.bartha@wsj.com)

0538 GMT - Developments in the Middle East will likely remain the key source of uncertainty for bond markets, LBBW's Elmar Voelker says in a note. "The consolidation of long-term bond yields in recent days has coincided with a temporary stabilization of energy prices at high levels," the senior fixed-income analyst says. For the time being, however, LBBW sees no reason to assume that the situation in the Gulf will ease soon. A damaged Saudi oil pipeline might eventually resume partial operations sooner than initially feared, which has slowed the rise in oil prices for now, but efforts to reopen the Strait of Hormuz appear to remain at a standstill, he says. (emese.bartha@wsj.com)

0536 GMT - Malaysia exports are likely to face headwinds in the remaining months of 2026 due to an unfavorable high base from last year, Apex Securities analyst To Zheng Hong says in a note. Structural growth in artificial intelligence, electric vehicles and other related industrial segments could support export growth, while energy exports could provide further support as Malaysia benefits from potential trade diversion linked to Middle East conflicts, he says. However, risks include renewed Middle East tensions disrupting global trade and continued uncertainty over U.S. trade policy. Malaysia also remains exposed to higher U.S. tariffs as a Section 301 investigation into structural excess capacity and production continues, he adds. (yingxian.wong@wsj.com)

0532 GMT - Citi raises its U.S. Treasury yield forecasts following the Federal Reserve's September interest-rate hike. It now expects the 10-year Treasury yield at 5.0% at year-end, strategist Jason Williams says in a note. "Typically, we are slow moving with our forecasts to limit chasing price action, but the world is now fundamentally different today compared to the July FOMC," he says. Citi assumes Fed rate hike pricing will remain until year-over-year core PCE starts to normalize next year, Williams says. Citi expects oil prices and the path of core PCE to drive the rates market for the remainder of this year, neither of which paints a good picture for yields in the short-run. (emese.bartha@wsj.com)

1108 GMT - The average U.K. house price rose 0.7% to 367,440 pounds in September, the first monthly increase since May, after a subdued and distracted summer, says Rightmove. The property website says the number of homes for sale is at a 12-year high, while the number of buyers enquiring across the market is 9% lower than this time last year. "With a large crowd of sellers chasing a smaller number of buyers, realism on pricing or a high-quality finish are absolutely key to attracting a buyer and making a sale," Colleen Babcock, Rightmove property expert, says. A home on the market for sale has a 61% chance of successfully finding a buyer at present, Rightmove adds. (joseph.wilkins@wsj.com)

0527 GMT - The Bank of Japan has succeeded in preventing long-term government bond yields from rising in a disorderly manner, JPMorgan says in a note. Gov. Kazuo Ueda's cautious stance over cost-push inflation and his nimble approach to additional rate increases have led to easing of concerns that the BOJ could fall behind the curve in dealing with inflation, the U.S. bank says. Commodity trading advisers and other short-term speculators have built historically large bearish positions in Japanese government bonds through futures and swaps, JPMorgan says. If long-term Japanese government bond yields and yen rates remain stable and real-money investors start buying long-term bonds, speculators could be forced to cover their short positions, the bank says. (kosaku.narioka@wsj.com; @kosakunarioka)

0522 GMT - The Federal Reserve's next interest-rate hike is expected to come in December, JPMorgan rates strategists say, confirming their previous view. Against this backdrop, they raise their year-end 2026 targets for two- and 10-year Treasury yields by 40 basis points to 4.70% and by 20 basis points to 5.05%, respectively. (emese.bartha@wsj.com)

0519 GMT - ​RBC BlueBay ​Asset Management sees some value in ​five-year U.S. Treasurys as they have approached 5% ​yields,​ says fixed income CIO Mark Dowding in a note. However, RBC BlueBay remains "more circumspect" regarding longer-dated maturities​, he says. Ongoing heavy debt issuance volumes from governments and corporates continue to pressure term premia globally and from this point of view, ​RBC BlueBay is disinclined to extend beyond intermediate maturities.​