The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0547 GMT - J.P. Morgan strategists recommend investors unwind 10- to 30-year U.S. Treasury flattener positions ahead of event risks--CPI data and Federal Reserve Chairman Kevin Warsh's inaugural testimony in front of Congress. "Front-end Treasury yields rose 6 basis points and the curve flattened by 3 basis points following further escalation in geopolitical tensions and hawkish Fed commentary," the strategists say. Fed governor Christopher Waller laid out his concerns that recent elevated inflation could become imbedded in expectations. Waller said if the CPI release continues to show core inflationary pressures, the Fed would "need to consider tightening monetary policy in the near term." (emese.bartha@wsj.com)
0544 GMT - Traders should watch for whether diplomacy could bring a solution to the issue of control of the Strait of Hormuz, to determine whether the conflict ends or smolders, Macquarie Group's Thierry Wizman says in a note. "So far, of course, that hasn't happened; the recurrence of the kinetic attacks that began last week continued over the weekend," the global foreign-exchange and rates strategist says. The escalation of the fight and the prospect that traffic through the strait will be completely blocked again (from both sides) remain the principal risks to global growth through their effect on supply constraints, reflected in oil prices, he says. (emese.bartha@wsj.com)
0534 GMT - U.S. Treasury yields rise in overnight trading, driven by higher oil prices. The 10-year Treasury yield rose to 4.634%, an almost eight-week high, before retreating to 4.620%, still up 1.2 basis points on the day, according to Tradeweb. The two-year Treasury yield hit an intraday high of 4.294%, the highest since February 2025, before easing back to 4.283%. "Investors still expect the Middle East situation to find a resolution rather than spill back into an all-out conflict," says Navellier & Associates' Louis Navellier in a note. While oil prices are rising as the standoff in the Strait of Hormuz continues, they are still below the war-time peak, he says. Brent oil is up 2% at $84.95 a barrel. (emese.bartha@wsj.com)
0528 GMT - If the U.S. inflation run-up is relatively contained, the Federal Reserve will likely be able to look through the data and avoid hiking interest rates this year, Russell Investments' BeiChen Lin says ahead of the June U.S. CPI release. "Many of the inflation drivers that were present in 2022 are absent today," the senior investment strategist says. "And with energy prices having come down significantly from the conflict level peak, we do not expect inflation to reach the levels it reached in 2022," he says. (emese.bartha@wsj.com)
0510 GMT - Monetary Authority of Singapore's July meeting looks increasingly "live" compared with two weeks ago, two economists at BofA Global Research say in a research report. The economists cite Singapore's "strong" 1H 2026 GDP data and recent pickup in global oil prices. In coming days, the economists will closely eye the following for policy signals: economic outlook in the upcoming MAS annual report, authorities' view in IMF's Article IV Consultation, and the CPI outlook due out July 23. "Our base case is for MAS is to deliver a hawkish pause in July and to set the stage for an eventual tightening move in Oct.," the economists add. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
July 14, 2026 01:47 ET (05:47 GMT)
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