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

0846 GMT - The euro faces further depreciation if foreign investors continue to reduce their holdings in French government bonds, known as OATs, MUFG Bank's Derek Halpenny says in a note. "With 56% of French sovereign bonds held by foreign investors, global fixed income sentiment will remain a key driver of the OAT/German Bund spread over the period ahead." Japan has been steadily cutting back on OAT holdings and other countries could be doing the same, keeping risks elevated for the assets, he says. The euro falls 0.5% to $1.1203. French 10-year yields rise 10.4 basis points to 4.856%, according to Tradeweb. (renae.dyer@wsj.com)

0831 GMT - Yields on U.K. government bonds rise, with 10-year and 30-year yields reaching their highest in six days and inching closer to recent multiyear highs. The rise comes as oil prices increase, investors expect major central banks to raise interest rates, while continuing French budget concerns cause French government-bond yields to rise. U.K. investors are also nervous ahead of the Oct. 28 budget. The government has shrinking headroom against its fiscal rules as yields rise, although the government has pledged it will keep to these rules. The 10-year gilt yield rises 3.5 basis points to 5.414%, having hit an intraday high of 5.433%, Tradeweb data show. They hit a multiyear high around 5.510% on Oct. 1. (jessica.fleetham@wsj.com)

0825 GMT - ​​​​Europe's position compared with the U.S.'s may be stronger than many expected, ING Group chief economist and head of research Marieke Blom says in a post late Monday. She says that Europe's broader economy was barely affected by U.S. tariffs in 2025, with exports of goods to the U.S. accounting for just roughly 3% of EU GDP in gross terms, and that the EU is making headway diversifying its trade partnerships with other countries such as New Zealand and India. "Europe is working to reduce critical dependencies without abandoning openness to trade," she says. "It is a delicate balancing act, and one where Europe is gradually finding its footing," she says. (edith.hancock@wsj.com)

0803 GMT - Gold prices fall as investors await the release of the Federal Reserve's meeting minutes for more cues on this year's inflation and monetary policy outlook. According to the FedWatch tool, traders are pricing in less than a 22% chance of further hikes this month. In early European trading, gold futures are down 0.6% at $4,159.90 a troy ounce. "Tuesday's advance to $4,180 was met with fresh selling as oil prices rebounded and long-end bond yields remained near multiyear highs," analysts at Saxo Bank say. Meanwhile, the U.S. dollar index is up 0.3% at 102.19, making dollar-denominated commodities more expensive for overseas buyers. (giulia.petroni@wsj.com)

0727 GMT - The euro falls, albeit staying above recent lows, as oil prices increase and French government bond yields resume rising amid concerns about the country's indebtedness. In an interview with The Wall Street Journal, French Finance Minister Roland Lescure said the government was prepared to exercise special constitutional powers and circumvent parliament to pass billions in spending cuts if negotiations stall over next year's budget. French 10-year yields rise 6.4 basis points to 4.817%, having reached 4.993% Friday, the highest since 2002, LSEG data show. The euro drops 0.3% to $1.1227 after hitting $1.1160 Monday, the lowest in more than 16 months. (renae.dyer@wsj.com)

0714 GMT - Yields on French government bonds rise in European opening trade and by more than their eurozone peers. French bonds remain in focus amid budget talks in which the government insists it will cap the deficit at 5% of GDP. Opposition far-right leader Marine Le Pen's fiscal plan "may briefly support OATs, but a lack of credibility and the election uncertainty ahead still point to spread widening risks," ING rates strategists Michiel Tukker and Benjamin Schroeder say in a note. Eurozone yields also track a rise in Treasury yields ahead of Federal Reserve minutes due later. The German 10-year Bund yield rises 2.2 basis points to 3.495%, while the 10-year French OAT yield increases 5.4 basis points to 4.806%, according to Tradeweb. (emese.bartha@wsj.com)

0704 GMT - Bitcoin stays weaker after reaching a one-week low overnight as the dollar and Treasury yields rise along with oil prices due to the Middle East conflict. Meanwhile, the Federal Reserve's September meeting minutes are due at 1800 GMT. "A cautious tone on further tightening would reinforce the pause the market has priced [for October 28], while a firmer one would raise the odds of a hike sooner," Nexo's Iliya Kalchev says in a note. The minutes, bond yields and exchange traded fund flows will be key for bitcoin's direction, he says. Bitcoin falls 1.6% to $84,303 after reaching as low as $83,682 overnight, LSEG data show. (renae.dyer@wsj.com)

0701 GMT - The Bank of Japan has a favorable window to hike rates through next spring, says Mitsubishi UFJ Morgan Stanley Securities strategist Naomi Muguruma. As the Federal Reserve and the European Central Bank have resumed rate hikes amid higher oil prices, it will likely be easier for markets to digest the BOJ's monetary tightening than when foreign central banks are cutting rates, she says. Consumer price growth is also expected to accelerate in the second half of the fiscal year ending March 2027, she adds. The Overnight Index Swaps market is pricing in more than an 80% chance of a December hike. (megumi.fujikawa@wsj.com)

0654 GMT - The dollar gains as the Middle East conflict pushes up oil prices and as Treasury yields rise. Investors are looking ahead to the minutes of the Federal Reserve's September meeting when the central bank unanimously voted to raise interest rates. However, the minutes at 1800 GMT are likely old news, Commerzbank's Antje Praefcke says in a note. The September inflation figures next week should provide the first truly directional clues for the Fed's October 28 meeting, she says. In the meantime, the dollar could remain in demand as the U.S. economy continues to show resilience, she says. The DXY dollar index rises 0.3% to 102.119. The 10-year Treasury yield rises 3.8 basis points to 5.309%, according to Tradeweb. (renae.dyer@wsj.com)

0635 GMT - The RBI's shift in its policy stance to "calibrated" suggests today's rate hike isn't an open-ended monetary-tightening cycle, Samco Mutual Fund's Umeshkumar Mehta says in an email. The Indian central bank's monetary policy will probably remain data-dependent and measured, the CIO says. Its description of a "calibrated" tightening underscores a preference for a gradual approach, leaving the door open to further action if inflationary pressures prove more persistent than anticipated, Mehta adds. The dollar rises 0.3% to 96.6425 rupees, highest intraday level since late July, LSEG data show. (ronnie.harui@wsj.com)

0632 GMT - Higher policy rates won't derail a U.S. economy driven by a largely rate-insensitive artificial-intelligence capex cycle, says Sylvia Sheng, multi asset solutions lead portfolio manager at J.P. Morgan Asset Management. Financial conditions also remain supportive, with credit spreads still tight and corporate fundamentals remaining healthy, she adds. J.P. Morgan's constructive stance on equities is underpinned by solid nominal growth, low recession risk and a sustained AI capex earnings cycle, she adds. The U.S. remains the asset manager's core overweight as it offers the broadest and most durable exposure to the AI capex and adoption cycle, while earnings momentum has started to broaden beyond the initial AI beneficiaries, she says. J.P. Morgan continues to believe the AI capex build-out has ample room to run. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0626 GMT - The Reserve Bank of India's pace of rate adjustments is likely to remain moderate and data-dependent, hinging on global oil prices, monsoon outcomes and market conditions, says Ajitabh Bharti at CapitalXB. The central bank's statement acknowledges that external shocks such as U.S.-Iran tensions and global rate increases could pressure the rupee and import costs, the executive director and co-founder says in an email. With nearly half of the inflation basket seeing price rises of 4% or more, and risks of inflation breaching the 6% tolerance band in the December quarter, Wednesday's pre-emptive tightening was prudent, he says.