Global Forex and Fixed Income Roundup: Market Talk

Dow Jones
09/28

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

0508 GMT - The latest leg of the bond selloff reflected stronger-than-expected September PMI prints, especially in the eurozone and the U.S., as well as sensitivity to energy headlines, J.P. Morgan strategists say in a note. Noise around potential U.S. diesel export restrictions added another layer of uncertainty, they say. The strategists recommend investors stay neutral on German bond duration near-term, "although we stress that intermediate yields remain compelling for long-term investors who can tolerate near-term volatility." (emese.bartha@wsj.com)

0506 GMT - JPMorgan affirms its bearish view on U.S. duration given the coming labor-market report and long position technicals, but its bearish bias isn't as strong as it has been in recent weeks, its strategists say in a note. They find that both the front-end and intermediate sectors of the U.S. Treasury curve have moved back in line with fundamental drivers, providing some near-term support for yields. (emese.bartha@wsj.com)

0505 GMT - Mitsubishi UFJ Morgan Stanley Securities brought forward its projected timing for Bank of Japan rate hikes to December 2026 and April 2027 from its earlier forecast of January and June 2027. "Expectations of further Federal Reserve rate hikes increase the chance that the BOJ will move somewhat faster in adjusting its degree of monetary support," the brokerage's analysts say in a note. The BOJ's July meeting minutes released Monday showed that one policy board member pointed to the possibility that the pace of rate hikes could be quicker than market expectations, given that underlying inflation is approaching 2% and greater attention should be paid to upside risks to prices than before.

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