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

1922 ET - The U.S. buyback of longer-dated debt, while immediately reducing 30-year bond yields by about 7 basis points, is relatively small, says Kieran Davies, chief macro strategist at Coolabah Capital. While the purchase of bonds and open-ended comments by policymakers can have a sustained effect on yields, the purchases usually have to be extremely large to have significant effect, he says. The Treasury announcement also does nothing about the drivers of higher bond yields, such as the demand for debt from government and tech companies, and the continuing risk of that inflation stays above the 2% target, he adds. (james.glynn@wsj.com; @JamesGlynnWSJ)

1550 ET - Treasury yields settle mixed as the U.S. government plans to buy back more of its long-term debt. The Treasury department doubles to $4 billion the cap for buybacks of 10- to 30-year maturities. A 20-year bond auction shows signs of firm demand, although the 5.204% yield is the highest since 2023. Fed minutes reveal increasing concern about inflation, but that was before a soft July CPI. Markets mostly price a Fed hold next month. The 30-year yield sheds 0.090 percentage point to 5.194%, the deepest drop since October. The 10-year falls 0.054 p.p. to 4.651%. The two-year rises 0.004 p.p. to 4.178%. (paulo.trevisani@wsj.com; @ptrevisani)

1529 ET - In July's Fed meeting, "some participants commented that financial conditions might not currently be sufficiently restrictive to facilitate a return of inflation to 2 percent." Today's moves in yields---such as lower long-end yields, tighter term-premia and a weaker dollar---only eases financial conditions further, said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. For those officials, "That gives them potentially another reason to think about a need for policy tightening," Luzzetti said.(jessica.coacci@wsj.com)

1432 ET - At the July FOMC meeting, Chairman Warsh discussed limiting the number of Fed meetings to gather more information, suggesting it may be more useful for the committee to have evolved views if there were more time between them, minutes show. "The Chairman observed that six scheduled meetings per year, held roughly every two months, would allow more information to accumulate between meetings than under current practice." However, "The Chairman asked for input from the Committee on these issues, but no decisions regarding possible changes in the meeting schedule were made, and the Chairman indicated that any change in practice would not affect the schedule over the balance of 2026." (jessica.coacci@wsj.com)

1421 ET - On-blockchain lending done through either a CeFi platform like Coinbase or Tether or DeFi providers like Compound, Aave, and Morpho continues to lose steam in 2026, according to a note from Galaxy Research. Combined, crypto-collateralized lending in 2Q 2026 fell by nearly 17% from the prior quarter, totaling $56.2 billion, the firm says. The dollar-denominated value of loans held by DeFi lenders plummeted nearly 28%, to $20.4 billion. While the decreases are large, Galaxy characterizes them as a "steady, stepwise decline," as opposed to a complete collapse of lending volume. "This measured pace points to a much healthier deleveraging cycle, driven by gradual risk reduction rather than forced liquidations or counterparty failures," Galaxy says. (kirk.maltais@wsj.com)

1403 ET - At their July meeting, Fed officials weighed two separate ways that artificial intelligence could pose risks to the economy. First, they worried that the investment boom is inflationary. Several officials thought of AI "as already having broader effects on prices by pushing up aggregate demand or assessed it would likely do so relatively soon," according to the minutes. Second, they worried that AI-fueled stock gains could pose a financial-stability risk. If tech earnings forecasts are revised lower, it "might lead to a broad-based repricing of assets, generate tighter financial conditions, and create strains in financial institutions directly or indirectly exposed to the sector," some participants said. (matt.grossman@wsj.com; @mattgrossman)

1403 ET - The July Fed meeting didn't result in a rate hike, but inflationary risks dominated the conversation about the economic outlook. According to the minutes, "many" officials--the Fed's counting word for a big group who nonetheless didn't make up a majority--continued to think that rate hikes would be needed if inflation didn't cool. Importantly, though, this meeting came before last week's cooler July inflation figures, and before the weaker July jobs report. Those numbers have led traders to pull back bets on a September hike. Plus, there's still another month of inflation and jobs data to come before the Fed's next meeting. (matt.grossman@wsj.com; @mattgrossman)

1400 ET - The Treasury yields curve flattens as longer-term rates decline on government intervention while shorter maturities hold up. The Treasury Department says it will double to $4 billion from $2 billion the cap for long-term bonds buyback. A 20-year bond auction clears at the highest yield since October 2023, at 5.204% but it was in line with market pricing, indicating stable demand. That compares to a 5.257% rate before the buyback announcement. The 30-year falls to 5.212% from 5.266% before the news and the 10-year slips to 4.670% from 4.706%. Shorter-term Treasurys rise. The two-year reaches 4.201%, up from a morning low of 4.152%. (paulo.trevisani@wsj.com; @ptrevisani)

1322 ET - The jump in bitcoin, going as high as nearly $69,000, comes as traders speculate over whether the Federal Reserve's meeting minutes will signal the likelihood of no rate hikes near-term. For bitcoin, the accelerating inflows from institutional investors is giving traders some confidence. "Institutional demand is beginning to recover after several sessions of weakness, which could help improve broader short-term market sentiment," says Julian Pineda of StoneX. Over the previous two days, bitcoin ETFs recorded net inflows totaling nearly $487M. That's a stark reversal from much of the spring and summer, when investors were seen largely pulling money out in favor of more lucrative opportunities like AI stocks. Bitcoin is up 5.9% to $68,374. (kirk.maltais@wsj.com)

1222 ET - Remarks from the US Trade Representative about progress on US-Canada trade talks point to the full reversal of digital policies introduced by former Canada PM Justin Trudeau, says internet-law expert Michael Geist. USTR says a tentative deal with Canada will incorporate "digital trade alignment." Geist, a law professor at University of Ottawa, notes Canada had already retreated from a digital-services tax compelling US streamers to hand over up to 15% of their Canadian revenue toward the domestic arts sector. Geist reckons the Trudeau-era online news law is now likely dead too. Meta Platforms blocked links starting in 2023 to news stories on Facebook and Instagram in Canada as the Trudeau administration law wanted digital platforms to finance media outlets. (Paul.Vieira@wsj.com; @paulvieira)

1203 ET - Major cryptocurrencies are posting big gains, driven in part by major surges in the amount of trading volumes over the past 24 hours. The Treasury Department steps up its buyback operations for government bonds, which in turn sends yields sharply lower. In turn, riskier assets like cryptocurrency are jumping, with bitcoin up 6.1%, ethereum up 9%, and solana up 6.8%. Trading volumes are up big over the past 24 hours, with ethereum practically doubling its trading volume in that time at $49.3 billion, according to data from Coinglass. Bitcoin volume is up 57% to $76.5 billion. Low trading volumes has been considered a factor for sluggish trade in cryptocurrencies in recent months by analysts. (kirk.maltais@wsj.com)

1147 ET - Investors are likely to dissect how the Fed argued for raising rates after the decision to hold rates steady drew three dissents from regional presidents when the central bank releases the minutes from its latest meeting this afternoon. The Treasury Department announced it would ramp up bond purchases, which sent yields lower. Some economists say the recent bond moves highlight a challenge for Chairman Warsh. "My sense is that this makes Warsh's job much more difficult with respect to achieving price stability...Warsh clearly prefers market derived rates absent Fed direction," writes Joe Brusuelas, chief economist at RSM.