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

0710 GMT - Eurozone government bond yields open slightly lower but they potentially face a challenging week as oil prices remain elevated and issuance will be heavy. High oil prices increase prospects of further interest-rate rises, while supply is due from Belgium on Monday, Netherlands and Italy on Tuesday, Germany on Wednesday and Spain and France on Thursday. "The bond markets remain in a precarious state," Commerzbank rates strategist Rainer Guntermann says in a note. "Rebounding oil prices, [European Central Bank President Christine] Lagarde's testimony today, and this week's data and supply could exacerbate the current nervousness," he says. The 10-year German Bund declines 0.2 basis points to 3.619%, according to Tradeweb. (emese.bartha@wsj.com)

0704 GMT - Investors raise their bets on the Bank of England increasing interest rates in November as oil prices advance. The absence of a breakthrough in the U.S.-Iran conflict is causing oil prices to climb, raising concerns about high inflation. Brent crude rises 2.3% to $106.7 a barrel. Markets price in an 81% chance of a BOE rate rise at the next policy meeting in November, up from a 62% probability a week ago, LSEG data show. (miriam.mukuru@wsj.com)

0653 GMT - Bitcoin falls as renewed geopolitical concerns and expectations for further U.S. interest-rate rises dampen appetite for risky assets. U.S. officials said President Trump rejected a proposal for a seven-day ceasefire and told aides he expects to resume bombing Iran after the November midterms, The Wall Street Journal reports. For bitcoin, the Middle East conflict, higher oil prices and inflation concerns push yields higher and pressure speculative and long-duration assets, Zaye Capital Markets analyst Naeem Aslam says in a note. Recent strong U.S. data support the case for further rate rises, also weighing on bitcoin, he says. Bitcoin falls 1.7% to $83,108, having earlier hit a one-week low of $82,773, LSEG data show. (renae.dyer@wsj.com)

0640 GMT - The dollar rises as hopes for U.S.-Iran diplomacy fade, lifting oil prices and driving investors towards safe-haven assets. U.S. officials said President Trump rejected a proposal for a seven-day ceasefire and told aides he expects to resume bombing Iran after the November midterms, WSJ reports. Higher oil prices support the dollar as the U.S. is a net oil exporter. The dollar is also lifted by expectations that the Federal Reserve could raise interest rates further. The U.S. nonfarm payrolls report on Friday will prove key for these expectations. The DXY dollar index rises 0.2% to 101.181. (renae.dyer@wsj.com)By Emese Bartha U.S. Treasury yields rose in Asian trade on Monday as yet another setback in efforts to resolve the Middle East conflict pushed oil prices higher.

Peace negotiators are pressing Iran to make a concession on its nuclear program to revive ceasefire talks with the U.S. after President Trump rejected Iran's truce proposal.

"Unfortunately we are in a one factor world right now with oil prices impacting rates and rates being the main driver of all asset classes," said Mohit Kumar, global economist at Jefferies, in a note.

The stalling pushed oil prices higher, with front-month Brent rising 3.4% to $107.91 per barrel. Higher oil prices keep inflationary pressures intense which in turn reinforces market expectations of further interest rate hikes by the Federal Reserve. Money markets currently price in a 68% probability of a 25-basis-point rate raise by the Fed in October.

"In our view the Treasury market is going through a light buyer's strike," Citi strategist Jason Williams said in a note.

Strong purchasing managers data last week and hawkish Federal Reserve speeches are "likely keeping buyers at bay," he said.

Treasury yields hovered close to their recent multiyear highs, with the 10-year Treasury yield up 3 basis points at 5.210%, according to Tradeweb.

This week could bring some respite to Treasurys, according to Williams, given the lack of issuance. "So far in 2026, Treasurys have tended to sell off more so on auction weeks than no supply weeks," he said.