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

0527 GMT - Going into 2027, eurozone bond curves are expected to resume steepening, encouraging debt management offices to continue gradually reducing weighted average maturity, Morgan Stanley strategists say in a note. "Nevertheless, we still see scope for new 30-year syndications across the Big 4 [Germany, Italy, France, Spain], with the exception of Spain," they say. Among smaller issuers, Morgan Stanley strategists expect potential 30-year deals from the Netherlands and Finland, and possibly Portugal. (emese.bartha@wsj.com)

0520 GMT - The recent rise in the 10-year U.S. Treasury yield has been driven by the real term premium, rather than inflation expectations or rate expectations, Variant Perception says in a note. "This can be viewed as a 'normalization' where the real term premium is back in its post-GFC [Global Financial Crisis] range." Variant's fair value for the 10-year yield is in the range of 4.10% to 4.35%. "The gap is wide, but not unprecedented, we saw similar gaps close in 2023 and 2024," it says. The 10-year Tresaury yield closed at 4.782% on Friday.(emese.bartha@wsj.com)

0518 GMT - Increasing debt supply in Europe to fund greater defense and infrastructure spending, inordinately high corporate debt issuance by hyper-scalers to finance AI investments, and rising fiscal spending in Japan, will likely increase term premiums globally, Said Haidar, Founder and CIO of Haidar Capital Management, says in a note.This will ultimately push-up longer-end U.S. Treasury yields as well in order to attract buyers, he says. If the U.S. opts for financial repression to artificially hold down long-end yields, the likely outcome is U.S. dollar debasement-as illustrated by recent moves in FX markets as well as strength in gold and other commodities, he says. (emese.bartha@wsj.com)

0506 GMT - Macquarie Group brings forward its expectation of a Federal Reserve interest-rate hike, now expecting it this month instead of December, following stronger-than-expected labor market data, says David Doyle, head of economics. The strong report, together with hawkish remarks on inflation from Chairman Kevin Warsh, has led to a shift in market expectations for Fed hikes, he says. Macquarie continues to anticipate a second 25-basis-point hike in the first quarter of 2027, Doyle says. August CPI data on Friday is likely to be a significant input into the September policy decision. "If this is strong, it will likely solidify a hike this month. In contrast, soft data could lead the FOMC to defer a hike to October or December."