The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
1650 ET - The ongoing rise in developed market bond yields is probably overdone, exacerbated by "positioning washouts," says Pepperstone senior research strategist Michael Brown. Still, talk of government support schemes to cushion the impact of higher energy prices will add to concerns about mounting pressure on government budgets worldwide, he says. It is safe to assume those economies which were in the worst fiscal shape pre-crisis will be underperformers here, Brown says. That leaves gilts, in particular, exposed to further downside if government spending taps are turned back on, he says. (james.glynn@wsj.com; X @JamesGlynnWSJ)
1648 ET - Global markets are bracing for a risk-averse start to the week, says Michael Brown, senior research strategist at Pepperstone. Traders have what appears to be a massive risk event when President Trump's 48-hour deadline to re-open the Strait of Hormuz is set to expire, he says. That's going to keep participants on edge, underpinning demand for havens like the U.S. dollar, Brown says. The risk that Iran then retaliates is also on the minds of traders, he says. It's impossible to price a concrete path on how all this evolves, so capital preservation is likely to be the priority, Brown says. (james.glynn@wsj.com; X @JamesGlynnWSJ)
1549 ET - A key risk facing financial markets is that the energy shock stemming from the conflict in Iran morphs into a fiscal shock as higher borrowing costs collide with already stretched public finances, says BBH in a note to clients. Longer term sovereign bond yields have pushed higher since the start of the Iran conflict driven by a toxic mix of rising inflation expectations, an upward repricing in central bank rate path, and growing fiscal concerns, it says. Upward pressure on government bond yields will add to existing fiscal strains as rising debt is compounded by higher interest expense, it adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
(END) Dow Jones Newswires
March 22, 2026 16:50 ET (20:50 GMT)
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