The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0636 GMT - Inflation remaining unchanged in May will almost certainly mean no interest-rate rise on Thursday from the Bank of England, Joe Nellis at MHA says in a note. Annual inflation was 2.8% in May, in line with the prior month and below forecasts. "The Bank is continuing to hold their nerve, as they monitor the difficult, ongoing trade-off between keeping inflation under control and avoiding further damage to an economy," Nellis says. The BOE may not have to raise rates at all this year, with inflation likely to stay below 4% if peace holds in the Middle East. Still, inflation is likely to edge higher over coming months, even if Middle East tensions are resolved quickly, Nellis adds. (don.forbes@wsj.com)
0551 GMT - The German Finance Agency's dual-tranche ultralong Bund auction features the only supply in the eurozone on Wednesday. Germany will auction 1 billion euros of the 3.40% May 2047 Bund and 1.5 billion euros of the 1.80% August 2053 Bund. Bond markets stay supported with Brent oil slipping below the $80 per barrel, says Commerzbank's Hauke Siemssen in a note. In Tuesday's session, long-end yields benefited the most, along with the tightening of eurozone government bond yields spreads, while the front-end faded the rally in the afternoon and the curve flattening from both sides, the rates strategist says. (emese.bartha@wsj.com)
0535 GMT - Investors will pay particular attention to the new Federal Reserve Chairman Kevin Warsh's first press conference on Wednesday, LBBW analysts say in a note. As this is the first appearance of the new Chairman, "his communication will be the focus of market participants," the analysts say. "He is expected to pursue a more restrained communication strategy for the Fed," they add. The Fed is expected to leave the interest rate unchanged at 3.50%-3.75%. (emese.bartha@wsj.com)
0527 GMT - Singapore's continued non-oil domestic exports growth is likely to continue in the near term, says DBS senior economist Chua Han Teng in an email. NODX surged 38.4% on year in May, the strongest since December 2003. Global artificial intelligence-related tailwinds are supporting external demand for Singapore's memory chips and server-related products. Flows of critical input supplies, including oil and gas, from the Middle East are likely to take time normalizing to pre-conflict levels. However, the expected reopening of the Strait of Hormuz would ease input cost pressures and supply chain disruptions, Chua says.(amanda.lee@wsj.com)
0527 GMT - Japan is rapidly diversifying away from its heavy reliance on Middle Eastern crude amid supply disruptions. The share of Japan's total oil imports from the Middle East on a volume basis fell from around 94% in 2025 to around 80% in April and May, says NLI Research Institute economist Taro Saito. "The diversification of crude sourcing is likely to make further progress," he says.. However, this supply security comes at a premium. Japan's crude import prices from the U.S. during April and May were roughly $10 per barrel higher than price of Middle Eastern crude, Saito says. (megumi.fujikawa@wsj.com)
0526 GMT - U.S. Treasury yields are marginally higher in Asian trade ahead of the Federal Reserve's interest-rate decision later Wednesday. The Fed is broadly expected to leave policy rates unchanged at 3.50%-3.75%, while the main element of surprise is expected to come from Kevin Warsh's first FOMC meeting and press conference as Fed chairman, says Carmignac's Kevin Thozet in a note. "Investors are now almost evenly split between the prospect of further tightening and that of policy easing, effectively pricing a steady Fed through year-end," the member of the investment committee says. The two-year Treasury yield is up 0.3 basis point at 4.047%, while the 10-year yield rises 0.6 basis point to 4.433%, according to Tradeweb. (emese.bartha@wsj.com)
0523 GMT - Singapore is rapidly emerging as a global test bed for tokenization, according to a new PwC report. The firm says the city-state is moving tokenization from pilot programs to commercial deployment, citing a series of government-led initiatives including the Monetary Authority of Singapore's Project Guardian, a stablecoin regulatory regime, and planned trials for the issuance and settlement of tokenized MAS bills using central bank digital currencies. Singapore's variable capital company framework and its network of double taxation agreements with more than 80 countries further strengthens its position as a hub for cross-border Asia-Pacific investment mandates, the report adds. (jason.chau@wsj.com)
0517 GMT - 'Normality' seems to have descended on markets this week, following news of the interim peace agreement and memorandum of understanding between the U.S. and Iran, Macquarie's Thierry Wizman says in a note. That is most apparent in the price of crude oil, he says. "That resumption of some normality means that traders might focus instead on central bank decisions this week," the global FX and rates strategist says. On Wednesday, the Federal Reserve will announce a rate decision, the first one under the new Chairman Kevin Warsh. Money markets price in a high probability of unchanged interest rates, according to LSEG. Macquarie doesn't want to dismiss the importance of the ongoing decline in crude oil prices on FX, either, he says. (emese.bartha@wsj.com)
0516 GMT - Singapore is well positioned to serve as a strategic hub for capturing Asia's growing asset and wealth management opportunities, according to a PwC report. PwC projects assets under management in the Asia-Pacific region will reach $34.5 trillion by 2030, expanding at a faster compound annual growth rate than in North America and Europe, with significantly greater untapped growth potential. The firm highlights Singapore's structural advantages, including its scale as one of the region's two largest international investment hubs, its status as a destination for high-net-worth wealth, its leadership in WealthTech and its emergence as a testing ground for tokenized fund structures. The report also suggests firms seeking to capture more opportunities must avoid relying on a single playbook for the region and diversify their offerings. (jason.chau@wsj.com)
0508 GMT - The upcoming FOMC statement is expected to indicate a clear two-way risk to rates over the short term, in line with the three hawkish dissents from the previous FOMC meeting at the end of April, BNY's John Velis says. A new Summary of Economic Projections--SEP, or the dot plot--will be released. BNY expects the median projection for end-2026 to eliminate the single cut that had been present for several cycles, the head of Americas strategy says. (emese.bartha@wsj.com)
0504 GMT - Even though investors have absolutely no doubt about the Federal Reserve's decision to keep the Fed funds target rate range at 3.50%-3.75%, this monetary policy meeting is one of the most important of the year, Natixis IM's Mabrouk Chetouane says in a note. "Since his appointment and for his first meeting as head of the FOMC, Kevin Warsh faces a challenging task," the global head of market strategy says. In more than just assessing the economic situation, the new Fed governor could initiate changes, particularly in the central bank's communication strategy, he says. "His first steps in office and his initial statements will be closely watched, as transitional periods within the world's most powerful monetary institution are typically a source of stress for capital markets." (emese.bartha@wsj.com)
(END) Dow Jones Newswires
June 17, 2026 02:36 ET (06:36 GMT)
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