Global Forex and Fixed Income Roundup: Market Talk

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

0512 GMT - The drivers of recent bond market moves differ slightly country by country, Catalyst Funds' Larry Holzenthaler says in a note. "The one difference is going to be general economic conditions and corporate earnings," the senior portfolio manager says. In the U.S., earnings results are in a pretty strong position versus other places in the world that might be a little bit more mixed, he says. Globally, sovereign debt loads are generally high pretty much everywhere around the world and that is clearly causing some concern further out the curve, while oil obviously is a part of that, he says. "Energy prices, generally, are going to impact different countries a little bit differently but the price of oil and energy is feeding into that," he says, adding that inflation is certainly an issue. (emese.bartha@wsj.com)

0507 GMT - The bond market has been, in a way, doing the Federal Reserve's job for it, CIFC Asset Management's Natalia Lojevsky says in a note. The two-year Treasury yield has been trading meaningfully above Fed funds for some time and "that's a Fed policy story in itself," the managing director says. It's also interesting to see a monetary-policy convergence happening, not just the bond story, she says. "It's the Fed and markets pricing in what is it now, 60% [chance] of a September hike," she says. The two-year Treasury yield falls 1.9 basis points to 4.366%, according to Tradeweb. (emese.bartha@wsj.com)

0506 GMT - Bond yields have more room to rise due to multiple unresolved issues, conflicts, and no clear resolution timeline anywhere, ​CIFC Asset Management's Natalia Lojevsky says in a note​. "You have two stresses hitting bond markets around the globe at the same time: a structural supply problem from deficits and massive issuance rates of corporate and sovereign​," the managing director says. That combination, not either one alone, is why we're seeing this move and why it's been relatively aggressive, she says. (emese.bartha@wsj.com)

0506 GMT - Some JGBs pare yield declines after tepid demand at the Japanese finance ministry's auction of 30-year sovereign debt. The bid-to-cover ratio, a measure of demand in bond auctions, stood at 3.79, lower than the 3.86 at August's 30-year sale. In another indication of soft appetite, the auction's tail, or gap between the average accepted price and the lowest, was at 0.28 yen, larger than 0.21 yen at the prior 30-year sale. Ten-year JGB yield is 4 bps lower at 2.970%, compared with 5 bps lower before the auction's outcome. Thirty-year yield is down 8 bps at 4.085%, versus a 9.5bp decline before the auction results. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

September 03, 2026 01:12 ET (05:12 GMT)