The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
1159 GMT - Appetite for Italian government bonds has been strong since the beginning of the year, keeping spreads tight, the Investment Institute of UniCredit's Francesco Maria Di Bella says in a note. Demand has been fuelled by a carry-supportive backdrop, stable political situation and further rating improvements, the fixed income strategist says. The 10-year Italian BTP-German Bund yield has stabilized at around 60 basis points. "We expect it to remain at this level for the foreseeable future," he says. UniCredit's previous forecast indicated a level of 70bps, he says. The 10-year BTP-Bund yield spread last trades at 61.5bps versus around 67bps at the start of the year, according to LSEG. (emese.bartha@wsj.com)
1155 GMT - Eurozone government bonds have been stable in the past few weeks, with the 10-year Bund yield trading in the 2.8%-2.9% area, the Investment Institute of UniCredit's Francesco Maria Di Bella says in a note. The potential benefits from Germany's fiscal bazooka and other supportive fiscal policies are not yet visible but macroeconomic data are encouraging, the fixed-income strategist says. "This supports the optimistic rhetoric of the European Central Bank which is not concerned about inflation decelerating to below 2% in January," he says. This macroeconomic backdrop, together with heavy supply pressure, is already priced into current eurozone government bond valuations, which could remain stable in the absence of major geopolitical events, he says. (emese.bartha@wsj.com)
1137 GMT - U.S. technology giant Alphabet is selling bonds in the sterling and Swiss markets in an attempt to diversify its sources of funding, Syz Group's chief investment officer Charles-Henry Monchau says. "As funding needs for those U.S. megatech companies rise to finance AI-related spending, they have to diversify their sources of funding and tap non-domestic markets," he says. Alphabet is issuing both sterling-denominated and Swiss franc-denominated bonds, including a 100-year maturity sterling bond. The 100-year bond should attract demand, Monchau says. "There is a structural demand for long and very long dated bonds coming from pension funds [in the U.K. market]." (miriam.mukuru@wsj.com)
1132 GMT - U.S. Treasury yields decline in European hours with markets focused in particular on Wednesday's January U.S. labor market data, postponed from Friday. Prior to that weekly ADP private payrolls data are due. The data could potentially add to expectations for U.S. interest-rate cuts, DHF Capital S.A's Bas Kooijman says in a note. "In an environment where the resilience of the labor market is increasingly being questioned, any downside surprise could heighten caution ahead of Wednesday's nonfarm payrolls report and pressure both the dollar and Treasury yields," the asset manager says. The 10-year Treasury yield falls 1.6 basis points to 4.181%, according to Tradeweb. (emese.bartha@wsj.com)
1131 GMT - Bitcoin's descent continues. The cryptocurrency trades below the psychologically important $70,000 mark, as investors flee risky assets, Wealth Club's Susannah Streeter says in a note. While there's been some bargain hunting after last week's sharp falls, sentiment has turned lower again with bitcoin dragging other cryptocurrencies lower, she says. Crypto is a speculative asset and sentiment suffers when jitters take hold, whether due to fears of an AI bubble, the prospect of fresh geopolitical conflict or interest rates staying higher for longer, she says. "Institutional demand has also cooled sharply amid portfolio recalibration, adding to bitcoin's decline." Bitcoin falls 2.2% to $68,806, according to LSEG. Ether drops 5.3% to $2,009. (renae.dyer@wsj.com)
1116 GMT - Investors are likely to continue demanding risk premiums on U.K. government bonds as the political environment is still unstable, ING's Benjamin Schroeder and Michiel Tukker say in a note. Prime Minister Keir Starmer on Monday defied calls to resign, offering temporary relief to investors who were concerned about a possible change in the U.K. leadership. Although gilt yields have declined modestly following Starmer's reassurance, markets are likely to continue demanding higher yields on U.K. government bond than on their developed market peers, the strategists say. Ten-year gilt yields fall 2.7 basis points to last trade at 4.503%, Tradeweb data show. (miriam.mukuru@wsj.com)
1059 GMT - Investors behind private funds are more diverse than ever, HFQ Fund's Zarina Sattarova says in a note. High-net-worth individuals, single- and multi-family offices, pension funds, insurers, endowments, sovereign wealth funds and private banks all play distinct roles, the relationship manager says. "A large portion of capital is typically raised from large institutions, family offices, and high-net-worth individuals," she says. The expansion of the investor base and the acceleration of allocations point to stronger opportunities for managers, she says. "Private markets are no longer funded primarily by a narrow pool of large institutions; they are increasingly supported by a multilayered capital stack." (emese.bartha@wsj.com)
1034 GMT - The recent upturn in Japanese government bond yields is mostly a normalization after many years of deflation and low or even negative interest rates, Van Lanschot Kempen's Joost van Leenders says in a note. "The new government's biggest fiscal plans could exert further upward pressure on yields," the senior investment strategist says. Expansionary fiscal policy under Prime Minister Sakae Takaichi has raised concerns about debt sustainability, causing JGB yields to rise and the yen to weaken. Takaichi secured a landslide victory at weekend's Lower House and promised responsible fiscal policy. (emese.bartha@wsj.com)
1019 GMT - South Korea's economy is undergoing a K-shaped recovery, ANZ Research's Sanjay Mathur says in a note. The economist highlights divergences in intra-manufacturing, sectoral and household incomes and expenditures. A widening gap between semiconductor exports and other products reveals the disparity between large firms and smaller businesses. Weak construction activity is weighing on GDP growth, with the residential sector particularly soft due to tighter macroprudential norms. Wages and sales in the top income quintile have risen faster than in the bottom two, Mathur adds. The resolution of these imbalances are more related to global demand and fiscal factors than monetary policy, though the Bank of Korea may be inclined to offer targeted support, ANZ says. Overall, the K-shaped recovery won't hinder policy tightening, it adds. (jason.chau@wsj.com)
0933 GMT - The euro trades steady against the dollar, remaining strong after hitting a one-and-a-half-week high in the previous session. Procyclical currencies, which are positively correlated to economic growth, "remain in demand and that includes the euro," ING's Chris Turner says in a note. Eurozone sentiment figures continue to rise including the February Sentix investor confidence survey on Monday. It's unclear whether the euro will extend gains above $1.19, however, he says. It will probably take a surprisingly soft U.S. nonfarm payrolls report on Wednesday for the euro to rise to $1.20, he says. The euro is little changed on the day at $1.1919 after reaching a high of $1.1926 Monday, LSEG data show. (renae.dyer@wsj.com)
0925 GMT - Google parent Alphabet's $20 billion bond issuance saw "overwhelming" demand, enabling an issuance volume above the expected $15 billion, Saxo analysts say in a note. Alphabet is now diversifying its issuance, issuing bonds in sterling, including an unusual 100-year bond, and it also plans Swiss franc issuance. (emese.bartha@wsj.com)
0905 GMT - Coca-Cola HBC is poised to better navigate a challenging environment this upcoming year compared to the past, due to its investments in commercial capabilities and portfolio, analyst Edward Mundy at Jefferies says in a note. The bottler's recent purchase of CCBA Africa will be a "growth engine" for the business, Mundy writes. Coca-Cola HBC reported on Tuesday a growth in net profit in 2025, and said it expects to see value creation out of its Africa operations. Mundy says the appreciation of South African Rand to Euros since the acquisition was good timing. Shares are up 3.46% or 148 pence at 44.24 pounds. (aimee.look@wsj.com)
(END) Dow Jones Newswires
February 10, 2026 06:59 ET (11:59 GMT)
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