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

0327 GMT - The recent selloff in French government bonds reflects both carry-trade unwinds and a growing reassessment of French fiscal risk, says State Street Investment Management's Masahiko Loo. Hedge funds and active real-money investors unwinding carry positions helped amplify the move amid recent political headlines, the strategist says in a note. "The bigger issue is that bond investors are increasingly questioning France's fiscal trajectory." France hasn't run a budget surplus since 1974, and while policymakers have signaled their intention to address fiscal challenges, the timeline and details are likely to face significant implementation hurdles. Volatility is likely to remain elevated into the April-May 2027 presidential election cycle, Loo says. (monica.gupta@wsj.com)

0251 GMT - The Singapore dollar consolidates against its U.S. counterpart in the Asian session, but may be weighed by higher oil prices, which are typically negative for currencies of net energy-importing countries. "Firmer oil prices reignited concerns over inflation and the higher-for-longer [U.S.] interest rate outlook," UOB economists say in a report. There are "growing expectations that the Fed may need to keep interest rates elevated for longer," they add. The U.S. dollar is little changed at 1.2797 Singapore dollars, LSEG data show.(ronnie.harui@wsj.com)

0225 GMT - Malaysia's coming Budget 2027 is unlikely to provide a significant boost to the domestic construction sector, CIMB Securities analysts Kenny Mak Hoy Ken and Wei Yi Tan say in a note. Development spending is projected to rise 3.8% to 83 billion ringgit in 2027, with most spending likely spread across smaller and mid-sized projects, they say. The focus is expected to remain on reducing regional development gaps, particularly in East Malaysia and interior areas. Project awards and execution will be more important than headline allocations, while higher energy and logistics costs could pressure contractors' margins from 4Q. CIMB maintains a neutral rating on the Malaysian construction sector, and favors Gamuda and IJM. (yingxian.wong@wsj.com)

0225 GMT - The State Street risk appetite index fell in September to its weakest reading since March's outbreak of war in Iran. Equity allocations remain historically high at 56.6%, but fell 0.8 percentage point in September, the data shows. Meanwhile, fixed income allocations recorded their largest monthly increase in just over five years--but holdings remain historically low, it adds. September's surge suggests long-term investors are finally responding to higher sovereign yields despite the difficult macroeconomic outlook, the bank says. State Street derives its findings by monitoring allocation patterns by investors active under its $57.9 trillion in funds under management. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0200 GMT - The yuan consolidates against the dollar in onshore and offshore markets on the first trading day in mainland China after a long holiday. "The first fixing after the break could provide an important signal on the authorities' comfort with the recent RMB strength," two strategists at OCBC Group Research say in a note. However, "beyond the initial reopening adjustment, we would be cautious about reading too much into a single fixing; whether any move extends will depend on subsequent fixing signals and how onshore flows return after the holiday," the strategists add. The PBOC set today's USD/CNY fixing at 6.7367 versus 6.7351 on Sept. 30, CFETS data show. The dollar is little changed at 6.7015 onshore yuan, LSEG data show. (ronnie.harui@wsj.com)

0157 GMT - The Reserve Bank of India's surprise change in stance to a calibrated tightening from neutral was aimed at anchoring inflation expectations and building a buffer against adverse global conditions, say Nomura analysts in a note. The investment bank expects the RBI to deliver a second 25-basis-point rate hike in December and pause thereafter, contrasting with the market view of a prolonged hiking cycle. The RBI had raised its FY27 GDP growth and inflation forecasts to 7.1% and 5.2%, respectively, while lifting its one-year-ahead inflation forecast to 5.6%. (venkat.pr@wsj.com)

0115 GMT - The Reserve Bank of New Zealand is recruiting. The RBNZ has commenced a search to fill two new roles of Assistant Governor Monetary Policy and Assistant Governor Payments and Cash. The new roles follow the departure of Assistant Governor Money, Karen Silk. Governor Anna Breman is using the opportunity to shake up the executive team to strengthen leadership capacity, clarify accountabilities, and support closer coordination across RBNZ's core responsibilities. The new arrivals won't have an easy task, facing elevated unemployment and inflation. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0017 GMT - Japanese stocks are lower in early trade as uncertainty over borrowing costs and the Iran conflict persists. Machinery makers and trading houses are leading declines. Komatsu is down 4.8% and Mitsui & Co. is 3.7% lower. The dollar is at 157.91 yen, down from Y158.35 as of Wednesday's Tokyo stock market close. Investors are closely watching developments in the Middle East, crude oil prices and bond yields. Quarterly earnings from Fast Retailing and Seven & i Holdings, due later on Thursday, are also in focus. The Nikkei Stock Average is down 0.7% at 69559.50. (kosaku.narioka@wsj.com; @kosakunarioka)

0015 GMT - JGBs rise in price terms in the morning Tokyo session amid possible position adjustments. Thursday's focus is likely to be on the Japanese Finance Ministry's auction of about 600 billion yen of 30-year sovereign debt. "The smaller issuance amount versus other maturities and the rise in yield to date should attract demand, particularly from real money," says SMBC Nikko Securities' Miki Den in a research report. "We expect a somewhat strong auction," the senior Japan rates strategist adds. The 30-year JGB yield is down 2.5 bps at 4.185%. (ronnie.harui@wsj.com)

2348 GMT - Japanese stocks may fall as uncertainty over borrowing costs and the Iran conflict continues. Nikkei futures are down 0.5% at 69955 on the SGX. The dollar is at 157.98 yen, compared with Y158.35 as of Wednesday's Tokyo stock market close. Investors are focusing on developments in the Middle East, crude oil prices and bond yields. Quarterly results from Fast Retailing and Seven & I Holdings due later Thursday will be closely watched. The Nikkei Stock Average fell 0.9% to 70035.71 on Wednesday. (kosaku.narioka@wsj.com)

2335 GMT - 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)

2240 GMT - 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.