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.

0522 GMT - U.S. Treasury Secretary Scott Bessent can buy some time with an increased longer-dated bond buyback, but for the bond market's fiscal concerns to ease, actual action has to be taken in Washington, Bernstein Private Wealth Management's Matthew Palazzolo says in a note. Bernstein Private Wealth Management has limited expectations in this regard. "The bond market, though, is much larger and stronger than the Treasury," the senior investment strategist says. Relatedly, it's worth noting that the recent bond moves are not a U.S.-only phenomenon, he says. "So, to anchor the Treasury yield move in large part to our deficit issues is myopic, in our view," Palazzolo says. (emese.bartha@wsj.com)

0516 GMT - The move of the 10-year Treasury yield back to 5% is real, but the cause is narrower than the headlines suggest, Bernstein Private Wealth Management's Matthew Palazzolo says in a note. "In our view, the big driver of the move in Treasurys recently has been the anticipated policy path or, alternatively, the real yield, which have each risen by around 50 basis points this year," the senior investment strategist says. "It tells us that the move is not due to higher inflation expectations since those expectations haven't changed much," he says. He adds that it is also not illuminating concerns about a material inflation shock or other macro/geopolitical shock, as those are accounted for by the term premium, which has also moved sideways of late. (emese.bartha@wsj.com)

0507 GMT - The bigger question after the Federal Reserve's 25bp rate increase Wednesday is whether the move will be "one and done" or mark the beginning of another tightening cycle, TruStage chief economist Steve Rick says. "Higher oil prices stemming from continued conflict in the Middle East could keep inflation elevated, but monetary policy works with long and variable lags, and additional increases would put more pressure on consumers and businesses already facing elevated borrowing costs," he says. The Fed should give the increase time to take effect before determining how much additional restraint is necessary, Rick says. (emese.bartha@wsj.com)

0503 GMT - "AI presents an interesting challenge for the Federal Reserve because it could be inflationary in the near term and disinflationary over the longer run," TruStage chief economist Steve Rick says in a note. The enormous investment in data centers, chips, power and skilled labor is creating significant demand today, which could add to price pressures in parts of the economy, he says. "But if those investments translate into stronger productivity growth, AI could ultimately allow the economy to grow faster without generating the same degree of inflation," Rick says. (emese.bartha@wsj.com)

0502 GMT - It was important to see a united Federal Reserve, which draws a line under any potential market concerns around Fed credibility, Impax Asset Management's Ross Pamphilon says in a note, after the Fed unanimously voted to raise interest rates on Wednesday. "One more hike penciled in for later this year will be well received by the market," the fixed income CIO says. Given that the U.S. Treasury market was already reflecting tighter monetary conditions, this was arguably a credibility hike with the Fed passing the test with flying colors, he says. On Wednesday, the Fed voted unanimously for a 25-basis-point rate increase. (emese.bartha@wsj.com)

0500 GMT - Singapore's central bank could raise the slope of its monetary policy band "very slightly" in October, says Barclays's Brian Tan in a note. This implies a 25 basis-point adjustment to an estimated 1.50%, the economist says. He views such a move as justified due to likely relatively robust gross domestic product growth into 2027, citing "the sheer magnitude of the artificial-intelligence boom." He raises his 2026 economic growth projection to 5.5% from 4.5% to factor in Singapore's still-firm August nonoil domestic export figures. The Monetary Authority of Singapore uses the exchange rate as a policy tool for maintaining price stability, given the city-state's small and open economy. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

September 17, 2026 01:22 ET (05:22 GMT)