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

1935 ET - Asian currencies consolidate against the dollar in early trade but may be weighed by safe-haven demand for the greenback amid rising Middle East tensions." A pickup in Iranian attacks on vessels in the Strait of Hormuz kept Brent oil futures elevated," supporting the dollar, CBA's Carol Kong says in a research report. Also, the minutes of the FOMC's September meeting "reinforced the view that the Fed's hiking cycle is not over," the economist and currency strategist adds. The U.S. dollar is little changed at 1,339.51 won and is flat at 1.2795 Singapore dollars, while the Australian dollar is steady at US$0.6961, LSEG data show. (ronnie.harui@wsj.com)

1840 ET - Australia's housing market slump will have a big impact on state government tax revenues, UBS says in a note to clients. They may need to issue an additional 35 billion Australian dollar in bonds during the coming four years to fill the revenue void, it adds. UBS assumes that so-called stamp duty on property sales falls 20% in 2026-27, remains flat in 2027-28, and rebounds 10% in each of the subsequent two years. A 20% fall in stamp duty in 2026-27 would correspond to a 10% fall in property prices. Higher bond yields could also add up to 5.5 billion dollars to state borrowing over the forecast period. (james.glynn@wsj.com; X @JamesGlynnWSJ)

1810 ET - Infratil's bull at Citi looks past headwinds buffeting the valuation of its CDC data-center business recently. Infratil said the latest valuation of CDC was A$18.5 billion, down 0.4% from end-June. It cited the effects of a material rise in the forward yield curve, resulting in higher assumed interest costs. "While elevated interest rates represent a clear macro headwind to valuation multiples, CDC's underlying operational momentum remains robust," analyst Suraj Nebhani says. Infratil's share price has trended lower since its July high, down some 14%. It means the stock trades at a more than 30% discount to net asset value, which Citi finds attractive. "Supported by ongoing CDC de-risking and Longroad's energy and data center pipeline execution, we see compelling risk-reward and reiterate our 'buy' rating," Citi says. (david.winning@wsj.com; @dwinningWSJ)

1651 ET - Mexico's inflation likely picked up pace in September on increases in noncore prices, while core inflation is seen easing from August. The consumer price index is expected to have risen 0.44% last month, pushing the 12-month rate up to 3.47% from 3.26% in August, according to a WSJ survey of analysts. Core CPI likely rose 0.23%, bringing the annual rate down to 3.78% from 3.88% in August. Statistics institute Inegi is due to release September inflation data on Thursday.(anthony.harrup@wsj.com)

1547 ET - Treasury yields fall from fresh intraday highs as an auction of $39 billion in 10-year notes clears at a yield of 5.300%, the highest in 26 years. Investors, however, show interest for the offer, driving yields down in secondary markets. Demand "was very strong and that's the reason for yields pulling back," Spartan's Peter Cardillo says. Fed minutes released an hour after the auction keep expectations of a hold this month priced in. The 10-year settles at 5.276% down from an intraday high of 5.361%. The two-year slips to 4.762% from 4.834% and the 30-year falls to 5.660% from 5.699%. (paulo.trevisani@wsj.com; @ptrevisani)

1527 ET - Minutes from the Federal Reserve's September meeting offered little indication of an urgency to deliver another rate hike this month, BMO analysts say in a note. The minutes show unanimous support for fiscal tightening and a high likelihood of another rate hike this year, they say. But officials also emphasized that they would approach each meeting with an open mind and make decisions based on incoming information, the analysts say. The market-implied odds of a rate hike this month have slipped in the wake of the minutes, which reinforces New York Fed President Williams' recent message that there is "no need for urgency," the analysts say. (dean.seal@wsj.com)

1437 ET - One promising aspect of the AI buildout for policymakers is that its near-term inflationary pressures could eventually ease if the technology delivers a productivity boom in the future. But minutes from the Fed's September meeting highlighted risks that could delay those gains. "A few participants flagged emerging concerns regarding potential repercussions associated with rapid adoption of AI, including cybersecurity and other risks, that could act as a drag on productivity in some cases," the minutes said. This month, policymakers including Fed governor Michael Barr and Fed governor Lisa Cook have highlighted uncertainty on the timing of productivity tied to AI. (jessica.coacci@wsj.com)

1430 ET - Several Federal Reserve members said at their rate-setting meeting last month that the possibility of further tariff increases creates upside risk to inflation. Minutes from the meeting show that officials are making inflation their top priority as the labor market holds steady and financial conditions remain stable. Both total and core inflation are higher than their year-earlier levels due to the impact of the White House's previous tariff increases, among other drivers, according to Fed staff. The rate of price increases for core goods are still elevated due to the effects of the AI buildout, even as the effects of previous tariff increases have tapered off, several Fed officials said. (dean.seal@wsj.com)

1403 ET - As Treasury yields remain elevated, some Fed officials have been asked whether this means the market is doing some of the tightening for them. Tighter financial conditions mostly reflect expectations for higher policy rates, according to a note from Capital Economics. If central banks don't deliver them, tightening might be unwound. "We think that central banks are unlikely to hike interest rates as far as investors currently expect in the year ahead," the note says. Capital Economics says that's because energy prices may fall next year, therefore second-round effects will fail to materialize.(jessica.coacci@wsj.com)

1358 ET - Gold futures post their third decline in four sessions as the U.S. dollar gains and buoyant U.S. yields keep a lid on demand for the metal with the market looking to the Fed minutes for interest-rate guidance. Earlier gains in oil prices had put pressure on precious metals, given the inflationary implications of higher energy costs. Front-month gold settles down 1.1% in New York at $4,113.80 a troy ounce and silver falls 2.1% to $59.899 a troy ounce. (anthony.harrup@wsj.com)

1313 ET - Mortgages with principal balances of $100,000 or less are becoming increasingly scarce, Realtor.com says. That's limiting financing options for buyers of lower-priced homes. Small mortgages represented more than 12% of all home loans originated in 2013 and 2014, but less than 3% in 2025 and 2026. The decline reflects both a shrinking pool of low-priced homes and persistent barriers to originating smaller loans. Small mortgages are most prevalent in lower-cost and rural areas. In 2025, Iowa had the highest share of small mortgages at 9.6%, followed by Wyoming at 8.6% and Mississippi at 8.5%. The borrowers using small mortgages don't appear to present weaker credit profiles. The median purchase price for homes financed with small mortgages was $109,681 in 2026. (chris.wack@wsj.com)

1245 ET - New record-highs for Treasury yields and their influence on a stronger U.S. dollar are a pressure point for commodities as a whole, says Brian Pullam of Linn & Associates. "Usually when we see this type of trade, wheat gets the brunt of the selling in grains," says Pullam. The most-active wheat contract falls 2.3% while corn slides 1.1% and soybeans drop 0.7%. The Federal Reserve will release the minutes from its last meeting at 2 p.m. ET, with investors watching for more details on the Fed's approach to managing inflation and whether more rate hikes are on the way.