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

0614 GMT - Generali Asset Management affirms its neutral view on U.S. rates, although levels close to 4.50% [in 10-year U.S. Treasury yield] could justify a more constructive stance, says Mauro Valle, head of active fixed income. In terms of portfolio positioning, Generali AM maintains a neutral view on Bunds. "We are monitoring whether oil prices stabilize, and whether the European Central Bank expectations will converge to a softer scenario of two hikes, in which case the 3.0% level [in 10-year Bund yield] could again offer an attractive entry point for adding duration," he says. The 10-year Treasury yield rises 1.6 basis points to 4.430% in Asian trade, while the 10-year Bund yield closed at 3.067% on Thursday, according to Tradeweb. (emese.bartha@wsj.com)

0611 GMT - Malaysia will likely be least affected in Southeast Asia by the Middle East coonflict, RHB economists say in a research report. Malaysia's position as an oil producer with refining capabilities puts it in a robust position compared to other oil-importing economies. The country relies on the Middle East for around 69% of its crude oil imports. Domestic petrol and diesel supplies are currently sufficient, with reserves expected to last until at least May 26, RHB says. The Malaysian government is also exploring more oil reserves and alternative supplies in West Africa and Latin America to strengthen its energy security, if Middle East tensions persist. (amanda.lee@wsj.com)

0611 GMT - The global impact of the Middle East war is still unclear, while the risk of second-round inflation effects complicates central banks' guidance and rate projections, says Generali Asset Management's Mauro Valle in a note. "Markets have already repriced inflation risk, especially at the short end, but there is still no clear assessment of the implications for global growth or recession risks across regions," the head of active fixed income says. This time, central banks, caught between rising inflation pressures and growing geopolitical uncertainty, want to act pre-emptively to prevent inflation from getting out of control as it did in 2022, he says. "But there is a risk that an overly restrictive policy may not be the most appropriate choice in the medium term." (emese.bartha@wsj.com)

0521 GMT - South Korea's gross domestic product this year could see a limited boost from planned supplementary fiscal stimulus aimed at cushioning energy shocks stemming from the Middle East conflict, Morgan Stanley's Kathleen Oh says. The economist expects the roughly 25-trillion-won extra budget in the works--due to be detailed by March 31--to focus on direct transfers to households and hard-hit industries. Stimulus in the form of consumption vouchers and energy coupons is likely to provide only a limited boost to growth, Kim says. She estimates it could add about 0.15 percentage point to this year's GDP growth, partly offsetting downside risks from higher oil prices. (kwanwoo.jun@wsj.com)

(END) Dow Jones Newswires

March 27, 2026 02:14 ET (06:14 GMT)

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