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.

0525 GMT - The U.S. Treasury's auction of two-year notes on Tuesday might face headwinds, making concessions necessary for a solid takedown, J.P. Morgan strategists say in a note. "Overall, while we are sensitive to the high level of outright yields, we ultimately think the macro backdrop will weigh on the supply process, and the auction will likely require more of a concession in order to be digested smoothly," they say. The Treasury will auction $69 billion of two-year notes. (emese.bartha@wsj.com)

0523 GMT - A torrent of communications from the Reserve Bank of Australia over the last month is now ending as it heads into a blackout period ahead of next week's policy meeting. There should be little doubt that the RBA will raise interest rates and keep the door open for another rate hike in November. RBA officials always appeared tentative about keeping interest rates on hold in August, and since then the message from the war in the Middle East and two key meetings of central bankers in the U.S. has reaffirmed that hawkish bias. The bank is downplaying risks to house prices and jobs and looks ready to hike. (james.glynn@wsj.com; @JamesGlynnWSJ)

0521 GMT - France's credit ratings are unlikely to change before next year's elections, TD Securities' Pooja Kumra says in a note. The next key reviews are due on Oct. 23 by Moody's Ratings and Nov. 27 by S&P Global Ratings. Moody's has an Aa3 rating with negative outlook, while S&P has A+ with a stable outlook. Fitch Ratings kept its rating on France unchanged in August, while Morningstar DBRS only changed its outlook to negative from stable, confirming the AA rating. (emese.bartha@wsj.com)

0512 GMT - The 10-year French OAT-German Bund yield spread is expected to consolidate around 100 basis points as the market adjusts to this new reality, HSBC's Chris Attfield says in a note. "There is little point in trying to draw 'lines in the sand' beyond which spreads will not rise, but 120 bps may be the next psychological level in any further spread weakness," the European rates strategist says. Eurozone yield spreads have been systematically widening in response to the surge in yields, but France's move is far larger than HSBC would expect given its debt/GDP, he says. The 10-year OAT-Bund yield spread widened to 105.5 bps on Friday; it closed at 100.7 bps on Monday, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

September 22, 2026 01:25 ET (05:25 GMT)