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

1107 ET - Yields on global corporate bonds have been driven higher by rising sovereign bonds, which makes the assets attractive, Societe Generale's Juan Valencia says in a note. Companies still maintain healthy financial positions and demand for corporate bonds remains strong, Valencia says. These factors are likely to continue supporting corporate bonds' performance for the remainder of 2026, he says. (miriam.mukuru@wsj.com)

1045 ET - Bitcoin is up 0.7%, managing to mitigate pressure coming from higher Treasury yields. After posting a big surge earlier this week, Bitcoin and cryptocurrencies in general got squeezed due largely to the stronger U.S. dollar and those higher yields. "With global bond yields at elevated levels, non-yielding assets like bitcoin remain under increased pressure," says Inki Cho of Exness in a note. "Looking ahead, the outlook increasingly hinges on whether bond markets find some relief." Calming of the fighting in the Middle East may be a key step in providing that relief, Cho says. Ethereum is up 0.8%, XRP climbs 2.8%, and solana is up 2%. (kirk.maltais@wsj.com)

1036 ET - Scotiabank's Anthony Bambokian wonders whether there will be an expectation that Prime Minister Mark Carney's government will double down on more restrictive immigration policies after historic revisions to quarterly population estimates pushed total levels higher than previously thought. The economic analyst says that as fall approaches so too does Ottawa's new Immigration Levels Plan outlining the government's permanent and temporary resident admission targets for the following three years. If there are changes to immigration targets, Bambokian says the assumption is the focus would be on ensuring levels are calibrated to Carney's "build agenda" for the country rather than any dogmatic approach to caps and targets. (robb.stewart@wsj.com; @RobbMStewart)

1018 ET - Recent Mexican inflation readings show some moderation in upward pressure but aren't comfortable enough, "in particular core and services," for the central bank to consider additional interest-rate cuts, Goldman Sachs's chief Latin America economist Alberto Ramos says in a note. That is even more the case "when taking into consideration recent firmer domestic activity prints, higher oil prices and dollar yields, and the FOMC Fed Funds hike which further narrowed the already thin Mexico-U.S. rate differential," he adds. Inflation in Mexico was 3.42% in mid-September, with core CPI at 3.79%. In its interest-rate decision at 3 p.m. ET, the Bank of Mexico is expected to stay on hold for a third straight time. (anthony.harrup@wsj.com)

1015 ET - There weren't many positives in Canadian retail sales data for July, with sales down 0.7% on-month and an even weaker 1.1% in volume terms, CIBC Capital Markets Katherine Judge notes. However, the advance estimate for August looks better, with sales up an estimated 1.3%. Judge doesn't expect the momentum to last as lingering trade uncertainty and a related deterioration in the labor market will weigh on discretionary spending ahead. And that means that the Bank of Canada won't be raising interest rates in the near term, the economist says.(robb.stewart@wsj.com; @RobbMStewart)

1009 ET - This summer's heatwaves are expected to have cost the European economy 113 billion euros, or around $128 billion, according to a report by German insurer Allianz. That notches up a substantial economic burden from one hazard alone, corresponding to around 0.5% of combined projected GDP across 30 countries, and roughly 60% of the global extreme-weather losses recorded in 2025, the report says. Italy felt the biggest brunt of the hot weather, with losses of 27.8 billion euros, followed by Germany's 25.0 billion euros and France's 20.1 billion euros. The impact of humidity is even more significant, the report notes. "Italy's more humid heat episode is associated with a larger estimated growth loss than Hungary's hotter but drier conditions." (edward.frankl@wsj.com)

1002 ET - Worsening sentiment in fixed income leaves the currency market vulnerable to an unwinding of carry trades, MUFG Bank's Derek Halpenny says as yields in Treasurys and German Bunds hit multiyear highs. Carry trades, where investors borrow in low-yielding currencies to buy higher-yielding currencies, have performed well in a low foreign-exchange volatility environment, he says in a note. "Periods of low FX volatility always end with a bang and current market conditions are certainly consistent with an increased risk of that scenario materializing." High-yielding emerging-market currencies would suffer most while the Japanese yen and Swiss franc would outperform, he says. (renae.dyer@wsj.com)

1001 ET - Canadian consumer spending momentum dipped in July, though a single month doesn't make for a trend, Canadian Chamber of Commerce's Jasleen Trehan says. The economist in the chamber's business data lab notes that after a 0.7% pullback in July, the early estimate points to a 1.3% rebound in August that may suggest some momentum is already returning. "Heading into the fall spending season, the question is whether July was simply a pause after a strong June or an early warning sign of a more cautious Canadian consumer." (robb.stewart@wsj.com; @RobbMStewart)

0959 ET - A larger-than-expected 1.1% on-month fall in Canadian retail sales volumes in July isn't the end of the world, given the advance indicator implies that sales volumes fully rebounded in August, Capital Economics' Stephen Brown says. Still, the economist says consumer spending faces stronger headwinds from here on amid a renewed jump in gasoline prices. Brown says the sales data present only marginal downside risk to the flash estimate that monthly GDP was unchanged in July. And an advance estimate suggesting nominal retail sales rose 1.3% in August should equate to a similar sized rebound in sales volumes given goods prices were little changed. (robb.stewart@wsj.com; @RobbMStewart)

0957 ET - A decent August flash estimate for Canadian retail sales takes some of the sting out of a weak July report, Bank of Montreal's Shelly Kaushik says. "While significant trade uncertainty and the energy price shock remain material headwinds, consumers have so far stayed resilient," the economist says. Retail sales fell 0.7% on-month in July, with almost all sectors weaker, led by general merchandise which Kaushik says may reflect some soccer World Cup-related giveback. Sales n volume terms were down an even sharper 1.1%. Still, early data points to a 1.3% rise in sales in August, which Kaushik says implies a firmer figure for volumes since goods prices decreased. (robb.stewart@wsj.com; @RobbMStewart)

0950 ET - The bond selloff "likely highlights that investors are not yet comfortable owning bonds," BofA Securities' Yuri Seliger and Sohyun Marie Lee say in a note. They argue that indications of robust U.S. economic growth "should not be a huge surprise" and the selloff highlights unease among investors with "the environment of a Fed restarting the hiking cycle, continued conflict in the Middle East, and a resilient US economy and consumer." Yields ease from record levels but remain elevated. The 10-year is at 5.096% and the two-year at 4.843%. (paulo.trevisani@wsj.com; @ptrevisani)

0921 ET - Institutional demand for Bitcoin remains remarkably resilient despite some immediate pressures that have pulled it back from a recent rally, XS.com's Simon-Peter Massabni says in a note. Bitcoin is trading down after touching 8-month highs twice this week. The pullback reflects macroeconomic pressures, primarily a shift in interest rate expectations from the Federal Reserve's recent tightening, along with pessimism around the conflict in Iran, Massabni says. But net inflows for Bitcoin ETFs have surged, positioning the funds for their strongest weekly performance since October of last year, Massabni says. The heavy institutional buying establishes a firm price floor, he says.