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

0509 GMT - Norway's upcoming 20-year bond syndication is expected to be dominated by domestic investors, Danske Bank's Jens Peter Sorensen says in a note. Norway is expected to issue 10 billion Norwegian kronor in the new bond which has a maturity date of September 2046, the chief analyst says. The new bond will lengthen the Norwegian government bond curve by four years, as the currently longest-dated bond has its expiry date in 2042. (emese.bartha@wsj.com)

0508 GMT - A 25-basis-point rate hike by the Federal Reserve on Wednesday is largely priced into markets, thus the focus is on whether Chairman Kevin Warsh signals further hikes or emphasizes a data-dependent approach, Helaba Invest's Jens Bies says in a note. "However, we do not expect explicit forward guidance," says the head of rates and FX research and asset management. "In the absence of extremely hawkish signals, some rate hikes could be priced out, allowing U.S. Treasurys to recover from their elevated yield levels," he says. (emese.bartha@wsj.com)

0508 GMT - Helaba Invest uses the recent rise in U.S. Treasury yields to gradually extend duration, says Jens Bies, the head of rates and FX research and asset management. With the market now pricing in more than three interest-rate hikes by the Federal Reserve, "we see potential--and, above all, a favorable risk-reward ratio--specifically at the short end of the curve," he says. The long end will only become attractive again once economic growth begins to cool, he says. (emese.bartha@wsj.com)

0504 GMT - Slower model development will undoubtedly slow AI investment, which by some estimates, accounted for around half of U.S. economic growth in 1H of 2025, says Ipek Ozkardeskaya, senior analyst at Swissquote. At a time when the Western world needs AI-led growth to keep its head above water, the impact could be significant, she adds. Trade tensions, wars, disrupted trade routes, spiking energy prices, rising inflationary pressures and rising borrowing costs could only be neutralized by AI, she adds. Hitting the brakes could provide a negative backdrop for cyclical sectors, particularly industrials and consumer discretionary, she says.