Global Forex and Fixed Income Roundup: Market Talk

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

0616 GMT - J.P. Morgan continues to consider intermediate German government bond yields attractive for long-term investors who can tolerate near-term volatility, its strategists say in a note. J.P. Morgan maintains a strategic overweight in German bonds versus U.S. Treasurys, especially in the intermediate sectors. It also sticks with its cautious stance on intra-eurozone government bond yield spreads due to weakening sentiment on France, elevated developed-market rate volatility, and geopolitical and energy uncertainty. (emese.bartha@wsj.com)

0613 GMT - Given the data, this week's Federal Reserve interest-rate decision isn't obvious, but intermeeting remarks by Fed policymakers all suggest that the core of the Committee isn't minded to hike this week, J.P. Morgan's Michael Feroli says in a note. "Our best guess is that many were caught off guard by the market's very hawkish interpretation of the September FOMC meeting, and they aren't yet convinced that the Fed needs to embark on a full-throated tightening cycle," the analyst says. J.P.Morgan expects unchanged interest rates--in line with the market pricing--and looks for two hawkish dissents from Hammack and Logan, with a risk that Kashkari also dissents. (emese.bartha@wsj.com)

0502 GMT - While interest rate markets, FX and equities will likely bear the brunt of Brazil's surprise election result, expect sovereign credit to also widen by at least 30 basis points, says Jason Keene, emerging markets sovereign credit strategist at Barclays. That would push spreads on Brazil's 10-year bonds above 200 basis points and imply a price decline of at least 2 points, he adds. Beyond the initial election shock, a more charged political backdrop, a worse budgetary starting point, tighter domestic financial conditions and significant annual eurobond supply expectations are likely to continue to weigh on sovereign credit, Keene says. (james.glynn@wsj.com; @JamesGlynnWSJ)

(END) Dow Jones Newswires

October 26, 2026 02:16 ET (06:16 GMT)