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

2109 ET - Japan's inflation pick-up clears the way for a BOJ rate hike next month, Capital Economics' Abhijit Surya says in commentary. Government data released earlier showed Japan's consumer prices, excluding fresh food, climbed 1.8% in July from a year earlier, compared with June's 1.6% increase, the senior APAC economist notes. "With underlying price pressures intensifying, we're growing more confident in our view that the Bank of Japan will hike rates again at its meeting next month," Surya says. Capital Economics expects the BOJ to raise rates by 25 bps at its September meeting, and eventually increase rates to peak of 2% by end-2027. (ronnie.harui@wsj.com)

2058 ET - Most Asian currencies strengthen slightly against the dollar on skepticism over the U.S. Treasury Department's bond buyback plan. The plan "failed to anchor long-term [U.S.] yields for now, raising doubts whether Treasury buybacks can sustainably lower borrowing costs against persistent fiscal and structural pressures," strategists at OCBC Group Research say in a report. "So far, the surprise buyback programme has coincided with a weaker USD, higher gold prices and rising breakeven inflation rates," the strategists add. The U.S. dollar falls 0.5% to 1,387.30 won and edges 0.1% lower to 1.2712 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)

2048 ET - The Thai baht is likely to stay weak against the dollar in the near term, says BMI in a research report. The unit of Fitch Solutions cites Thailand's relatively accommodative monetary policy stance and elevated global energy prices. BMI expects the baht to remain under pressure in coming months and trade largely within 32.50-33.50 baht against the dollar. The dollar is 0.1% lower at 32.81 baht, LSEG data show.(ronnie.harui@wsj.com)

2030 ET - JGB futures fall in early Tokyo trade, tracking overnight price declines in U.S. Treasury market. JGBs and Treasurys tend to move in tandem. Investors have "expressed scepticism that the U.S. Treasury's planned increased bond buybacks would help lower longer-end yields," says Gavin Friend, senior market strategist at NAB, in commentary. Also, data released earlier showed Japan's consumer inflation picked up in July, which could add to expectations for a near-term BOJ rate increase. Consumer prices, excluding fresh food, climbed 1.8% in July from a year earlier, compared with June's 1.6% increase. Benchmark 10-year JGB futures are 0.24 yen lower at 126.48 yen. (ronnie.harui@wsj.com)

2020 ET - The Nikkei Stock Average falls 0.5% to 65907.18, tracking Wall Street's losses overnight. Growing doubts over the efficacy of the U.S. Treasury Department's bond buyback plan that dragged U.S. equities lower on Thursday appear to be spilling over into Japan. "Markets aren't buying" this plan, the analyst team at InTouch Capital Markets say in commentary. Among the worst performers on Japan's benchmark index, Asics Corp. falls 3.5%, Fast Retailing drops 3.4%, and Sumco Corp. sheds 3.2%. The dollar is at 158.98 yen, compared with Y158.50 around Thursday's Tokyo market close. (ronnie.harui@wsj.com)

1936 ET - Japanese stocks may fall, tracking Wall Street's losses overnight. Growing doubts over the efficacy of the U.S. Treasury Department's bond buyback plan that dragged U.S. equities lower on Thursday are likely to spill over into Japan's equity market. Nikkei futures are 760 points lower at 65550 on the SGX. The dollar is at 158.93 yen, compared with Y158.50 around Thursday's Tokyo market close. The Nikkei Stock Average closed 1.4% higher at 66216.79 on Thursday. (ronnie.harui@wsj.com)

1552 ET - Treasury yields ended higher, reversing the previous session's gains, as investors demanded a higher risk premium for bonds despite the Treasury's plan to buy back long-term debt. Treasury Secretary Scott Bessent said in a CNBC interview that the Treasury's buybacks could surpass $4 billion. The 2-year yield rose 0.007 percentage point to 4.185%. The 10-year yield rose 0.046 p.p. to 4.697%, and the 30-year yield rose 0.043 p.p. to 5.237%. Bessent also tried to calm investors by saying that worries about the budget deficit are overblown: "One of the things that's temporary here that's influencing the deficit has been these tariff refunds, and we won't have to do that again," Bessent said. (jessica.coacci@wsj.com)

1548 ET - While housing inventory across the nation saw a small decline over the last year, active listings in Northern Virgina grew by almost 20%, according to the Northern Virginia Association of Realtors. The Association's Chief Executive Officer, Ryan McLaughlin, said inventory growth is being driven largely by condos and attached homes, "which is particularly meaningful in a region where affordability remains a major consideration for buyers." The region saw 1,582 closed sales in July, down 1.9% from July 2025, according to the group, which added closed sales increased 0.7% to 4.06 million nationally. The median sold price in the region was $750,000, down 1.3% from July 2025, while nationally the median sold price rose 2% in that period, the Association added. (stephen.nakrosis@wsj.com)

1502 ET - Coinbase CEO Brian Armstrong is optimistic that the Clarity Act, crypto-friendly legislation that's still working its way through the Senate, will get passed with more than 60 votes. Democrats and Republicans both got "90% or so" of what they want in the bill proposal, Armstrong tells CNBC. "In any deal I've been a part of, you say yes to that deal," Armstrong says. Senate majority leader John Thune scheduled a floor vote on the bill for Sept. 15. "[Thune] would not have scheduled this on Sept. 15 if he didn't think it would pass," Armstrong says. (dean.seal@wsj.com)

1455 ET - Bitcoin crossed over $72,000, and is nearing the $73,000 mark as sentiment on the market quickly turns positive after being negative for months. CoinMarketCap's Crypto Fear and Greed Index has shot up to 63 out-of 100, crossing into a "greed" reading for the first time since October 2025 -- which is when bitcoin was trading at its all-time record highs of over $120,000. A crypto summit hosted in D.C. yesterday has led to speculation about the U.S. government buying bitcoin for stockpiling purposes. Bitcoin is up 5.3% to $72,711, while ethereum rises 5.1% to $2,330, XRP up 16.2% to $1.27, and solana up 4.2% to $87.24. (kirk.maltais@wsj.com)

1447 ET - The chief of Coinbase says it will be up to Congress and the White House to solve the large looming ethics question about the Trump family's financial interest in bolstering the crypto industry. The president has offered to put language in the Clarity Act, crypto-friendly legislation that Trump supports but has stalled in Congress, that would address some of the open ethical issues at hand, Coinbase CEO Brian Armstrong tells CNBC. Among potential solves are the president moving his funds into a blind trust. But the ethical challenges shouldn't derail the Clarity Act, Armstrong says. "We should not leave the status quo and leave Americans unprotected in a morass of state legislation to operate in the U.S., that's just going to ensure this all goes offshore." (dean.seal@wsj.com)

1301 ET - The U.S. intervention in bond markets could backfire, as the Treasury will need to issue more short-dated debt to finance long-term buybacks, First Eagle's Idanna Appio writes. The strategy entails "more interest-rate risk for the Treasury down the road when maturing obligations must be refinanced at higher prevailing rates," she says. "This rollover risk is particularly problematic in light of today's fiscal situation with a large primary deficit and high federal debt." Appio says the announced increasing buybacks still represent a small fraction of Treasury markets, making a sustainable relief less likely.