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

2056 ET - Asian currencies consolidate against the dollar, but may be weighed by safe-haven demand for the greenback amid tensions between Russia and Ukraine. Russia continued striking Ukraine's energy infrastructure despite U.S. President Trump's announcement of an "energy ceasefire", CBA's Kristina Clifton says in a research report. Also, "Ukraine's President Zelenskyy confirmed that Russia had not honoured the truce, and Ukraine would continue retaliating," the senior economist and senior currency strategist notes. The U.S. Dollar Index is likely to trade higher this week because of higher energy prices, Clifton adds. The U.S. Dollar Index is little changed at 102.566, LSEG data show; dollar is down 0.1% at 159.44 yen, but is up 0.1% at 1,336.20 won. (ronnie.harui@wsj.com)

2045 ET - JGBs edge lower in price terms in the early Tokyo session amid concerns over elevated oil prices that could be sustained by tensions in Europe and the Middle East. The Russia-Ukraine energy ceasefire is proving to be "illusive", NAB's Rodrigo Catril says in commentary. "In the Middle East, the Iranian-backed Houthis continued attacks on Saudi Arabia after striking airports over the weekend, with energy infrastructure also targeted," the senior FX strategist adds. Rising oil prices tend to cause higher inflation in Japan, which could lead to quicker pace of BOJ rate increases. The five-year JGB yield is up 1.5 bps at 2.350%. (ronnie.harui@wsj.com)

2018 ET - The Nikkei Stock Average falls 2.0% to 67644.31 amid geopolitical tensions that typically undermine appetite for risk assets. Ukrainian President Volodymyr Zelensky said that Russian strikes hit energy infrastructure across his country hours after President Trump declared an energy ceasefire between Russia and Ukraine. The main theme has been energy-driven risk and technology-led weakness, Commerzbank Research analysts say in a research report. Among worst performers on Japan's benchmark index, Kioxia Holdings slides 8.8%, Advantest drops 7.0%, and SoftBank Group loses 6.1%. The dollar is at 158.50 yen, compared with Y158.63 late Monday in New York. Japan's financial markets were closed for a public holiday on Monday. (ronnie.harui@wsj.com)

1942 ET - Japanese stocks may fall amid geopolitical tensions that typically undermine appetite for risk assets. Ukrainian President Volodymyr Zelensky said that Russian strikes hit energy infrastructure across his country hours after President Trump declared an energy ceasefire between Russia and Ukraine. Investors are closely monitoring developments between Russia and Ukraine and in the Middle East for their implications on crude oil prices. Nikkei futures are down 885 points at 68270 on the SGX. The dollar is at 158.52 yen, compared with Y158.63 late Monday in New York. The Nikkei Stock Average closed little changed at 69030.92 last Friday. Japan's financial markets were closed for a public holiday on Monday. (ronnie.harui@wsj.com)

1810 ET - Metals X likely needs to raise its offer for U.K.-listed First Tin to get a deal done, suggests Shaw and Partners. Metals X's proposal is worth GBP0.15/share. The Australian miner already owns nearly 30% of First Tin. Analyst Peter Kormendy says the offer price looks light against the 2024 definitive feasibility study for First Tin's Taronga project, which is being updated. "The strategic logic fits our consolidator thesis and the cost is modest relative to current Metals X cash," Shaw says. "Key questions from here are the increase likely needed for a successful outcome, and how Taronga capex sits alongside Rentails FID." Rentails is Metals X's tin project in Tasmania. Shaw has a hold call and A$1.90/share price target on Metals X, which ended Monday at A$2.03. (david.winning@wsj.com; @dwinningWSJ)

1711 ET - U.S. public pensions' funded ratio rose to an estimated average of 86% at the end of September, the highest level in nearly 20 years, according to Equable Institute, a bipartisan research provider focused on the public-pension sector. A booming stock market has boosted the metric, which is the ratio of pensions' assets to the present value of their liabilities, but this also makes pensions more vulnerable to an economic downturn, Equable says. "If there is a sharp market correction-whether from an AI bubble or other macroeconomic factors-recent gains could reverse quickly." Equable adds, however, that U.S. pensions could make their gains more sustainable by taking advantage of rising interest rates. "The flip side is that pension funds now have the opportunity to lock in higher bond yields for years to come." (luis.garcia@wsj.com; @lhvgarcia)

1445 ET - Municipal bonds in the U.S. continue to offer advantages relative to Treasurys despite recent choppiness, according to a Nuveen report. Yields have risen as investors harvest losses and swap into ETFs, among other factors, Nuveen says. Supply keeps rising, but new issues have been largely absorbed. "We believe the recent underperformance, largely due to volatility and technical pressures, continue to present a compelling opportunity for investors with cash on the sidelines to lock-in elevated yields and attractive valuations." the firm says. Nuveen estimates the tax equivalent yield in a 10-year AAA muni reaches 6.93%, compared to 5.23% in a 10-year Treasury. (paulo.trevisani@wsj.com; @ptrevisani)

1417 ET - Gold futures settle lower amid U.S. dollar gains and a rise in oil futures as Middle East tensions persist. The firmer dollar and high oil prices "reinforced concerns that persistent energy-driven inflation could keep the Federal Reserve on a hawkish policy path," Kaynat Chainwala of Kotak Neo says in a note. The market will be looking to this week's U.S. inflation data--CPI on Wednesday and PPI on Thursday--as well as comments by Fed Chairman Kevin Warsh for more clarity on the interest-rate outlook, she adds. Front-month gold settles down 0.6% in New York at $4,165.80 a troy ounce and silver falls 0.9% to $60.141 a troy ounce. (anthony.harrup@wsj.com)

1345 ET - The estimated funding level of pension plans sponsored by S&P 1500 companies increased by 1 percentage point in September to 113% as a result of an increase in discount rates slightly offset by a decrease in equity markets, according to professional-services firm Marsh. As of the end of September, the plans' estimated aggregate surplus increased by $6 billion, to $181 billion, compared with a $175 billion surplus at the end of August, Marsh says. "Pension funded status for the S&P 1500 rose 1% percent in September after interest rates climbed to 17-year highs," said Marsh partner Matt McDaniel. "Persistent inflation and high energy costs kept pressure on rates, prompting the Fed to raise them by a quarter point in September." (jennifer.williams@wsj.com; @jenkayw)

1323 ET - France's A+ rating is weighed down by high and rising debt and low potential growth, Fitch Ratings says. The nation is also experiencing a political and social backdrop that makes fiscal consolidation difficult, Fitch added. The country's proposed budget for 2027 "highlights the growing difficulty of reducing the fiscal deficit and stabilizing public debt amid weak growth, higher interest costs and persistent political fragmentation," Fitch says. Failing to reduce the debt could lead to a revision of the country's stable outlook to negative, Fitch says, adding "a further substantial rise in government debt could then lead to a downgrade." The latest budget proposal aims to reduce the deficit to 5% of GDP and comply with EU's net expenditure rule, Fitch says. (stephen.nakrosis@wsj.com)

1302 ET - Bitcoin treasury firm Strategy Inc., which holds the largest bitcoin reserves in the world, announced a new purchase of bitcoin to start the day. The firm buying 250 BTC, bringing its total ownership to 848,250 coins, at an average buying price of $75,444 across its treasury. This is the second purchase the bitcoin treasury made since the start of the month, according to Strategy's data. Strategy's purchases are often a catalyst for how bitcoin moves in a given trading day. Bitcoin falls 1%, ethereum is 0.2% lower, and XRP is down 2.2%. (kirk.maltais@gmail.com)

1239 ET - Bitcoin's next big test is Wednesday's CPI report, says analysts with Bitfinex in a note. "The question for this week is whether Wednesday's U.S. Consumer Price Index (CPI) report changes the rate and yield outlook enough to give bitcoin room to move, and whether spot demand is there to carry it," says the firm. An upward movement in prices would potentially demonstrate improved spot demand, as would an improvement of net inflows into bitcoin ETFs, says Bitfinex. Last week was net negative for ETF flows, according to data from Coinglass -- landing at a net outflow of $678.9 million. Bitcoin is down 1% to $82,816.