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

0545 GMT - The Reserve Bank of Australia is being explicit in its warning that the case to raise official interest rates further could form quickly and easily in the coming months. Governor Bullock sent that message last week, and her deputy, Andrew Hauser backed it up Wednesday with his own comments at a conference in Queensland. Given the highly uncertain outlook in the Middle East and the prospect of a big basic wage rise filtering into inflation, financial markets should be on alert for a fourth hike this year. Rarely do central bankers speak so clearly. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0539 GMT - U.S. Treasury yields decline in Asian trade, providing some relief after Tuesday's bond selloff and amid a stalemate in the Middle East. For Wednesday, the minutes of the Federal Reserve's July meeting might provide fresh input into its thinking regarding the policy path ahead. "The market is hoping that the minutes, along with [Fed Chairman Kevin] Warsh's first speech at the Jackson Hole symposium next week, will provide guidance on whether the interpretation of the Fed and economic developments is correct," SEB's Karl Steiner says in a note. The 10-year Treasury yield falls 1.8 basis points to 4.686%, while the 30-year yield declines 1.5 basis points to 5.269%, according to Tradeweb. The 30-year yield hit a 19-year high of 5.337% on Tuesday. (emese.bartha@wsj.com)

0527 GMT - Attractive real yields are supportive for duration exposure for the coming months, Julius Baer's Dario Messi says in a note. "Attractive real yields continue to argue for maintaining duration exposure into year-end or extending it where portfolios remain underinvested," the head of fixed-income research says. "With policy rates still relatively high and the labor market broadly balanced, the U.S. Federal Reserve is unlikely to find itself decisively behind the curve," Messi says. This should contain the risk of another sustained rise in long-term yields, he adds. As for duration, Julius Baer favors exposure through five- to 10-year corporate bonds, "while remaining disciplined on credit risk." (emese.bartha@wsj.com)

0527 GMT - Uncertainty over Japanese government spending will likely weigh on sentiment among superlong bond investors toward the year-end amid a growing debate over PM Sanae Takaichi's massive investment program and defense spending plans, says Mitsubishi UFJ Morgan Stanley Securities strategist Yasuhiro Nakatani. "Because the government won't set a ceiling on spending requests for growth sectors and crisis management, the total budget could balloon and spark fresh concerns over Japan's fiscal health," he adds. The 30-year JGB yield last stood at 4.100%.(megumi.fujikawa@wsj.com)

0517 GMT - Danske Bank expects the Federal Reserve to deliver two interest-rate hikes--in December 2026 and March 2027--to address underlying inflationary pressure, say senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen. This would bring the key policy rate to 4.00%-4.25%. "We still see a risk that the rate hikes could come earlier, but the latest disappointing set of data leaves a more balanced risk picture," they say in a note. Money markets are pricing in 23 basis points of rate hike in December and a cumulative 33 basis points by March 2027, according to LSEG. (emese.bartha@wsj.com)

0516 GMT - Norges Bank's decision to include the April 2028-dated government bond alongside the May 2039-dated bond in Wednesday's auction isn't surprising, given demand focusing on shorter maturities and the long end of the curve, SEB's Erica Dalsto says in a note. Meanwhile, "the mid-part of the curve remains offered," the chief Norway strategist says. Against this backdrop, the 2028-dated bond is a "natural addition" to the auction, she says. Norges Bank will offer a combined 3 billion Norwegian kroner in the two bonds. Following this auction, Norway will have issued 78 billion kroner in bonds year to date, approaching the annual supply target of 100 billion kroner to 110 billion kroner, she says. (emese.bartha@wsj.com)

0515 GMT - Australian wages growth cooled in 2Q 2026, but the coast is not yet clear for the Reserve Bank of Australia, which will be concerned that a big rise in the minimum wage in July will filter into bigger wage demands in 3Q, triggering a further rise in interest rates. The basic wage rose 4.75% on year, compared with a 3.2% on year increase for all wages in 2Q. Still, CBA economist Harry Ottley reports that the bank's internal data didn't detect any firming of wage momentum in July after the awarding of the basic wage rise. CBA still believes rates will remain steady. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0503 GMT - The Japanese finance ministry's auction of 20-year bonds Thursday will likely meet firm demand, says Mitsubishi UFJ Morgan Stanley Securities strategist Yasuhiro Nakatani. "Intervention by U.S. and Japanese currency authorities has fueled speculation of an imminent rate hike, helping ease fears that the BOJ might be behind the curve and providing a tailwind" for investors, he says. "With the 20-year bond yield hovering above levels seen at the previous auction, a fair number of investors are expected to find the current yields attractive," he adds. The 20-year JGB yield was at 3.845% at Tuesday's close, with no trade yet on Wednesday.