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

2010 ET - JGB futures edge higher in the early Tokyo session ahead of BOJ Deputy Governor Himino's speech expected later today, which investors are likely to monitor for any hints of the BOJ's rate-hike trajectory. Himino is scheduled to meet with local leaders in Saitama, Japan. "Markets are increasingly expecting the Bank of Japan to raise interest rates again when it meets" in September, StoneX's Matt Simpson says in commentary. "Markets have leaned even more heavily towards a September move following persistent inflation, yen weakness and rising Japanese yields," the senior market analyst adds. Benchmark 10-year JGB futures are 0.06 yen higher at 126.54 yen. (ronnie.harui@wsj.com)

1948 ET - Japanese stocks may rise after Nvidia's strong earnings eased concerns about the sustainability of artificial intelligence-related demand. Nikkei futures are up 0.9% at 66970 on the SGX. The dollar is at 159.23 yen, compared with Y159.06 as of Wednesday's Tokyo stock market close. Investors are focusing on any developments in the Iran war and crude oil prices. The Nikkei Stock Average rose 0.6% to 66262.16 on Wednesday. (kosaku.narioka@wsj.com)

1812 ET - A modest dip in Nvidia's stock price after the company's second-quarter earnings release turned into a gain during the company's earnings call, as it issues guidance for roughly 70% revenue growth in fiscal 2028. CEO Jensen Huang says the decision to guide a year in advance, a first for Nvidia, stems from improved visibility with both customers and suppliers, as well as a desire to increase transparency across the AI landscape. "Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%," Huang says. Shares are up 4.5% to $219.09 after-hours. (elias.schisgall@wsj.com)

1600 ET - Treasury yields rise as U.S. inflation and economic indicators support Fed hawks, while crude falls on hopes of a Hormuz reopening. Treasury auctions have solid demand, particularly for short-term bills. Weekly jobless claims are expected to increase to 208,000 from 206,000, according to a WSJ survey. The 30-year yield rises 0.011 percentage point to 5.185% and the 10-year adds 0.026 p.p. to 4.663%, both snapping a two-day declining streak. The two-year increases 0.021 p.p. to 4.222%. (paulo.trevisani@wsj.com; @ptrevisani)

1455 ET - The Trump administration has made a deal with major tech firms to help track how AI is affecting jobs and hiring, according to an Axios report. Kevin Warsh has expressed interest in incorporating more private sector data into the Fed. One of Warsh's new task forces is focused on improving the timelines of economic signals to help Fed make decisions. "We're moving toward a framework where we're going to give more emphasis to the private collection of data, and I think that's a positively encouraging step," says Joe Brusuelas, chief economist at RSM. At Warsh's June press conference, he said "there will be a review of official statistics, and at least as important, a view of bringing the best practices from the private sector and new analytical tools made possible by AI." (jessica.coacci@wsj.com)

1326 ET - The breakdown in trade relations between Canada and the U.S. is part of a wider continuing trade realignment, a story that is still being written, says BMO Capital Markets' Francois Trahan. The investment strategist says while people in Canada may think all that is needed is a new U.S. administration in two years and things can return to the norm, that isn't necessarily what lies ahead. "Friendly reminder that the Biden administration didn't remove the tariffs that were imposed on China during the first Trump administration." Trahan says a future administration may not have the ability to change the tariff policy because of the fiscal situation in the U.s. (robb.stewart@wsj.com; @RobbMStewart)

1323 ET - There is a divide between Canada and the U.S. that may make future negotiations over the U.S.-Mexico-Canada trade pact tough, says Steve Verheul, former chief trade negotiator for Canada. Speaking during a briefing organized by Bank of Montreal, Verheul says the two countries are increasingly in markets that move them further apart. Canada is likely to redouble efforts to diversify trading relationship, and there could be action on procurement and possible defense and energy-related issues, says the principal at public affairs agency GT. He doubts Canada will use energy or defense in any kind of retaliation against the U.S., but it will aggressively seek opportunities with other countries on areas like energy and critical minerals. (robb.stewart@wsj.com; @RobbMStewart)

1255 ET - A Treasury auction of 1-year 11-month floating-rate notes draws strong demand, as investors seek protection against Fed hikes. The bid-to-cover ratio, a measure of investor demand, was 3.14, lower than last month's 3.37 but still robust. Indirect bidders, a group that includes foreign institutional buyers, acquired 67% of accepted competitive bids, another indicator of firm demand. An auction of 17-week T-bills also has strong markers. Treasury yields are mostly rising, as data show the U.S. economy still running hot, underpinning bets on a Fed hike in coming months. (paulo.trevisani@wsj.com; @ptrevisani)

1225 ET - The Canadian government's $7.5 billion fiscal aid package would likely have a minimal impact on boosting the growth of the economy, UBS analysts say in a research note. The headline figure equals about 0.2% of Canada's GDP, but it would probably only increase GDP by 0.03% to 0.05%, the analysts say. That's because a big chunk of the aid comes in the form of loans that have to be repaid instead of direct grants, they say. On top of that, a lot of the funding goes toward multiyear projects that were already in motion, and household support is only going out if unemployment actively worsens, the analysts say. (dean.seal@wsj.com)

1110 ET - Hedge funds' participation in government bond markets has increased notably in recent years, raising the risk of more volatility in the markets, Capital Economics' Joe Maher says in a note. Major central banks have stepped back from buying government bonds, and pension funds' demand for sovereign bonds has declined, leading to greater participation by more price-sensitive investors, Maher says. "We think the presence of more speculative buyers such as hedge funds in these markets have made them more prone to spikes in volatility." U.S. 30-year Treasury yields last week hit 5.3371%, their highest since 2007, LSEG data show. (miriam.mukuru@wsj.com)

1102 ET - Current elevated government bond yields create opportunities for "larger and more durable income" through higher coupons and yields, BlackRock Investment Institute strategists say in a note. "Investors can now secure chunky income without necessarily reaching far out the yield curve or credit risk spectrum." Nonetheless, investors need to select carefully the opportunities that provide adequate compensation for risk, the strategists say. "We are more positive on shorter-term bonds where higher yields offer attractive income with less duration risk." (miriam.mukuru@wsj.com)

1056 ET - Consumers are still benefiting from income growth that's outpacing inflation, though an inflection point could be approaching, LPL Financial's Jeffrey Roach says in a note. Personal incomes grew 0.4% in July, twice as fast as the 0.2% growth in prices paid by consumers for goods and services, Roach says. If retailers use tariff rebates to cut prices, core inflation could come down, he says. Services inflation remains elevated, but there are signs of improvement, Roach says. Still, the balance of risks still tilts toward inflation for policymakers, he says. Any easing in geopolitical tensions would be a welcome relief for investors, Roach says.