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

0714 GMT - Bitcoin falls as continued uncertainty over the Middle East conflict keeps investors cautious over risky assets. President Trump denied reports that the U.S. offered Iran sanctions relief in exchange for Tehran showing concrete steps regarding its nuclear program. Bitcoin drops 0.6% to $83,075, LSEG data show. Upcoming U.S. inflation and employment data will be key for broader risk appetite and bitcoin, Zaye Capital Markets analyst Naeem Aslam says in a note. "If yields fall and exchange-traded fund demand remains positive, bitcoin could find stronger support above $83,000; if inflation stays firm and real yields remain elevated, the market may continue to struggle for momentum despite its improving institutional base," he says. (renae.dyer@wsj.com)

0707 GMT - The Bank of Japan's tankan corporate survey due Thursday morning will likely show an improvement in manufacturers' sentiment despite headwinds such as Middle East uncertainties and a weak yen. The diffusion index measuring the mood among large manufacturers is expected to stand at +25 in the September survey, up from +22 three months ago, according to a poll of economists by data provider Quick. "Following the September policy meeting, BOJ Gov. [Kazuo] Ueda noted a shift in the policy landscape and signaled that the central bank could raise interest rates more rapidly than in the past. The latest tankan results appear set to back that view," says Mizuho Securities economist Ryosuke Katagi. (megumi.fujikawa@wsj.com)

0646 GMT - China's 2026 GDP growth will likely be 4.5%, UOB says, placing it at the lower end of the government's official target range of 4.5% to 5.0%, UOB analysts write in a note. Looking ahead, fiscal support is likely to strengthen, primarily through an accelerated pace of bond issuance to bring forward infrastructure spending, they say. China's recent mortgage subsidies is unlikely to materially alter the country's growth trajectory, given the backdrop of slowing investment activity and softer private consumption since 2Q, coupled with persistently weak sentiment in the property market, UOB analysts write in a note. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0641 GMT - The dollar eases after reaching a two-month high Tuesday after softer-than-anticipated data and Federal Reserve speeches lowered expectations for U.S. interest-rate rises. Job openings fell by more than expected to 7.08 million in August, according to the Job Openings and Labor Turnover Survey. The Conference Board's consumer confidence index also fell more than anticipated to 81.9 in September from 88.6 in August. New York Fed President John Williams suggested the Fed shouldn't rush to raise rates further. Markets price a 44% chance of the Fed raising rates further in October compared to 73% Tuesday, LSEG data show. The DXY dollar index falls 0.1% to 101.239 after rising as high as 101.612 Tuesday. (renae.dyer@wsj.com)

0602 GMT - A stronger-than-expected U.S. jobs report on Friday "might actually be temporary bad news for markets as it could reinforce the need for another rate hike this year," Russell Investments' BeiChen Lin says in a note. If job creation ends up being in-line with or a touch softer than consensus expectations, it would still show a resilient U.S. economy, but would likely cause the market to dial back some of the aggressive Fed pricing, the senior investment strategist says. It is important for investors to remember that many of the key inflation drivers in 2022 are not present today and this limits how forceful the Fed needs to be with rate hikes, Lin says. (emese.bartha@wsj.com)

0535 GMT - U.S. Treasury yields decline in Asian trade, retreating from Tuesday's highs, as Federal Reserve speakers mitigated interest-rate hike expectations. "Fed speakers painted a somewhat mixed picture," say J.P. Morgan strategists in a note. Presidents Goolsbee and Musalem emphasized the near-term inflationary risks of AI demand, alongside broader potential productivity gains, while Governor Barr reiterated that in his base case, "further adjustments" will be necessary to get inflation back to target. Meanwhile, New York Fed President John Williams stressed that there "is no need for urgency" after the hike at the September meeting. The 10-year Treasury yield is down 2 basis points to 5.233%, while the 30-year yield, which hit a 24-year high of 5.621% on Tuesday, last traded 3bps lower at 5.563%, according to Tradeweb. (emese.bartha@wsj.com)

0514 GMT - The global government bond market is likely to remain under pressure in the short term, as no change expected for either energy prices or economic data, Erste Group analysts say in a note. In their base scenario, however, falling energy prices in 2027 will lead to declining inflation expectations. "This should favor falling yields, particularly for shorter maturities, as markets are likely to price in lower future policy rates," they say. On the long end of the curve, they see only limited downside potential. "Robust economic prospects, a high volume of government bond issuance, and the influence of U.S. yields are likely to keep long-term yields at elevated levels." (emese.bartha@wsj.com)

0509 GMT - Japanese industrial production is likely to be supported by artificial intelligence-related capital expenditures, SMBC Nikko Securities economists say in a note. Japan's industrial output in August fell 1.7% from the previous month. SMBC Nikko says the decline was partly due to automakers' suspending operations at some factories due to earthquakes and typhoons. Uncertainty remains high over the outlook for crude supply but Japan still maintains an oil reserve equivalent to about 200 days of domestic consumption and has been making progress in securing alternative supply, the brokerage says. The risk of a potentially significant oil supply shortage appears low for now, the economists say. (kosaku.narioka@wsj.com; @kosakunarioka)

0507 GMT - Eurozone countries' issuance of government bonds with maturities of more than 10 years is expected to fall meaningfully in October, Citi's Puja Sawant forecasts. Supply of bonds with maturities exceeding 10 years is projected to fall to 17% of conventional bond supply in October from 37% in September, the rates strategist says. Supply is expected to be concentrated in the seven- to 10-year sector, driven by elevated seven-year issuance. (emese.bartha@wsj.com)

0503 GMT - Gross government bond issuance in the eurozone is set to remain elevated in October, totaling 123 billion euros, according to Citi's forecasts. This estimated volume is in line with the projected monthly average of 2026 and also with the issuance volume in October 2025, says rates strategist Puja Sawant in a note. (emese.bartha@wsj.com)

0501 GMT - South Korea's headline inflation likely eased in September. The median forecast from a WSJ poll of 17 economists is for a 2.9% on-year rise in the benchmark consumer-price index, following a 3.1% increase in August. Shinyoung Securities economist Cho Yong-gu says the easing reflects the fading impact of a low base stemming from mobile-telecommunications rate discounts last year that had pushed up consumer prices in August. The index is expected to have risen 0.4% on month in September, following a 0.2% increase in August, the poll shows. Inflation likely accelerated on month due to price pressures from agricultural products and tourism services related to the Chuseok holidays, Citigroup economist Jin-Wook Kim says. The September CPI data are due on Friday.