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

2023 ET - Japan's Nikkei Stock Average is up 1.0% at 67401.66 as gains in chip shares offset losses in financial stocks. Kioxia Holdings is up 3.4%, and Tokyo Electron is 3.1% higher, while Mitsubishi UFJ Financial Group is down 2.4% and Tokio Marine Holdings is 4.5% lower. The broader market index Topix is down 0.5% at 4087.50. The dollar is 157.68 yen, compared with Y156.81 as of Wednesday's Tokyo stock market close. Investors are closely watching developments in the Middle East conflict, crude oil prices and bond yields. (kosaku.narioka@wsj.com; @kosakunarioka)

2021 ET - JGBs fall in price terms in morning Tokyo session on the prospects for a quicker pace of BOJ rate hikes. The BOJ Tankan survey released earlier showed "overall business conditions were the most favourable in decades, which should encourage the Bank of Japan to keep tightening policy at a faster pace," Capital Economics' Marcel Thieliant says in a commentary. Also, the Tankan "won't dispel the BOJ's concerns about upside risks to inflation and we're sticking to our view that the [central] bank will lift its policy rate to 2% by mid-2027," the head of Asia-Pacific adds. Ten-year JGB yields rise 2.5 bps to 3.085%. (ronnie.harui@wsj.com)

2013 ET - The 5% level on the U.S. 10-year Treasury yield has been an important psychological threshold for investors, effectively marking the upper end of the range since the post-Covid period, says David Clewell, portfolio manager for multi-asset global income strategy at T. Rowe Price. Once a key technical level like this is breached, systematic and quantitative positioning can amplify the move and lead to further selling, he says. Given the resilience of U.S. economic growth, there is a credible case for the 10-year Treasury yield to rise toward 5.5% to 6.0%, he adds. (james.glynn@wsj.com; @JamesGlynnWSJ)

1949 ET - Japanese stocks may remain rangebound as uncertainty over the Middle East conflict and the U.S. interest rate outlook continues. Some technology stocks may be supported after Micron Technology's profit and revenue surged in the fiscal fourth quarter. Nikkei futures are up 0.3% at 67240 on the SGX. The dollar is 157.47 yen, compared with Y156.81 as of Wednesday's Tokyo stock market close. Investors are focusing on developments in the Iran conflict, crude oil prices and bond yields. The Nikkei Stock Average rose 1.9% to 66753.72 on Wednesday. (kosaku.narioka@wsj.com)

1936 ET - The yen consolidates against other currencies ahead of the BOJ's tankan survey and its summary of opinions from its September meeting, which are due today. The tankan is likely to show "firmer business sentiment and elevated inflation expectations, bolstering the case for further BOJ rate hikes," CBA's Kristina Clifton says in a research report. "However, the BOJ's recent split decision and a more hawkish Fed mean BOJ rate hike expectations are unlikely to offer much support to the JPY," the senior economist and senior currency strategist says. The dollar is little changed at 157.39 yen, while the Australian dollar is 0.1% lower at Y109.28, LSEG data show. (ronnie.harui@wsj.com)

1918 ET - A more than 20% fall in the share price of Imricor Medical Systems since it entered the ASX 300 index in early September creates a great buying opportunity for investors, according to its bull at Morgans. Imricor ended Wednesday at A$1.585, having traded as high as A$2.07 in August. Morgans suggests seasonal weakness and rising interest rates may have contributed to the share-price fall. Recent news flow has been positive. "As we move into a seasonally stronger part of the year, together with our view that material news flow (NorthStar orders, submit clinical data, FDA approval) is expected, we believe the share price should move back over A$2.00," Morgans' analyst Scott Power says. Morgans has a speculative buy call on Imricor. (david.winning@wsj.com; @dwinningWSJ)

1851 ET - The slump in Australian home prices continued in September with prices down 1.1% according to property research group Cotality. Capital city prices fell 1.2% and previous months were revised to show bigger falls. Further falls are likely as home prices are being hit by a perfect storm of rate hikes, tax hikes on investors, poor confidence and poor affordability depressing demand, with a high risk of distressed sales flowing from higher mortgage rates and unemployment, says Shane Oliver, chief economist at AMP Capital. AMP now expects national average property prices to have a top to bottom fall in prices of 10% to 15%, of which they have done 5.2% so far. (james.glynn@wsj.com; @JamesGlynnWSJ)

1815 ET - Chicago Fed President Austan Goolsbee says consumer sentiment data is proving less useful for the Fed's forecasting as it continues to split further from what consumer spending data shows. "We're experiencing record divergence between the vibe and the hard data," Goolsbee says while delivering remarks in Chicago. The factors driving that divide include higher gas prices and food prices, which have high visibility and an outsize impact on sentiment, he says. People are also becoming less trusting in public institutions, including the Fed, Goolsbee says. That weak sentiment data is still important in a lot of applications, just not the Fed's "very narrow" purpose of balancing stable prices with maximum employment, he says. (dean.seal@wsj.com)

1802 ET - The Australian dollar continues its downward trend, falling by 0.5% in U.S. trading to around 69.50 US cents. A stronger U.S. dollar and weaker European and U.S. equities weighed on the pair.Less hawkish than expected policy meeting communication from the Reserve Bank of Australia on Tuesday and a slightly weaker August CPI data have caused markets to reduce RBA interest rate hike expectations, says Kristina Clifton, currency strategist at CBA.Markets are now pricing only a 20% chance of a November increase, she adds.(james.glynn@wsj.com; @JamesGlynnWSJ)

1801 ET - Bond markets remain under pressure, most notably at the longer end of the U.S. Treasury curve where yields continue to rise. The U.S. 10-year is trading near an intraday high of 5.30% and the 30-year at 5.64%, says NAB in a note to clients. The U.S. 30-year rose 40 basis points in September, and the 10-year was up by 55 basis points. For now, the repricing can be described as somewhat orderly, as it has coincided with a meaningful shift in Fed expectations, NAB adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)

1733 ET - The yield on the U.S. 10-year bond has moved to a fresh post-2007 high of 5.301%. The market price action suggests investors are trading with more of a "sell rallies" than "buy dips" mindset, says ANZ in a note to clients. Caution remains warranted as the bond rout continues and New Zealand rates will be biased higher in the coming session, it adds. Spreads to U.S. bonds are moving further into negative territory, consistent with the better relative fiscal outlook in New Zealand, it adds. That is resulting in local yields rising more slowly rather than bucking the global trend and falling, ANZ says. (james.glynn@wsj.com; @JamesGlynnWSJ)

1559 ET - Treasury yields reverse a flimsy decline caused by relatively mild inflation data to end a volatile quarter. Yields rose by nearly a full percentage point in the longer end, as markets furiously repriced expectations of a Fed hike amid rising government spending. The 10-year benchmark adds 0.872 percentage point in the past three months, most of it in September, to 5.292%, its highest settlement since May 2002. The 30-year also sets new 24-year highs and ends the quarter at 5.638%. The two-year rises 0.747 points in the 3Q, its highest quarterly increase since 2023, to 4.885%. Weekly jobless claims are expected to increase to 200,000 from 197,000.