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

0707 GMT--The Italian September BTP is on the upside and stands above its 50-period moving average at 154.97 on a 30-minute chart. From a technical point of view, the intraday RSI remains within its buying area between 50 and 70, confirming the bullish bias. As a consequence, above horizontal support at 154.80, the BTP is likely to advance toward the Aug. 10 top at 155.35 and toward previous overlap at 155.48 in extension. A third target is set at the Aug. 5 high of 155.71. Only a break below horizontal support at 154.80 would turn the outlook bearish and favor a weakness toward previous overlap at 154.54 and toward horizontal support at 154.20 in extension. The BTP is last trading at 155.16. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0702 GMT - European credit investors should prioritize euro corporate bonds over dollar-denominated debt due to tapering bond risks in the U.S., Commerzbank says. "From a tactical perspective, we hence suggest euro investors adopt a home bias," the German bank says. The seemingly diverging policy exit paths signaled by the European Central Bank and Federal Reserve could "keep things in motion in coming weeks", exacerbating more downside risks in dollar-denominated corporate bonds than in the comparable euro market moving toward fall, it says. (lorena.ruibal@wsj.com)

0701 GMT - Malaysia central bank's move to slash its 2021 GDP growth forecast to 3.0%-4.0% from 6.0%-7.5% seems drastic given that vaccinations in the country have been progressing rapidly, says Capital Economics. It says this should allow the rolling back of containment measures and a return to some form of normality by the start of 4Q, setting the scene for a decent improvement in GDP. While economic weakness is likely to continue in 3Q, the research firm expects Malaysia to stage a strong rebound in 4Q. It keeps its full-year GDP growth estimate at 5.0%. (chester.tay@wsj.com)

0656 GMT - Rents for Grade-A office space in Singapore's central business district could will likely fall as demand wanes in the wake of Covid-19, Savills says. But initial market expectations of a 5% drop over 2021 now seem unlikely because tenants will probably spread out their downsizing over the next 12 months instead of concentrating it in the next two quarters. Instead, Savills expects office rent to decline by a maximum of 3% this year. Rent prices could also get some support from reduced supply, with Savills noting that some office towers like AXA Tower and Fuji Xerox Tower closing for maintenance. (yongchang.chin@wsj.com)

0653 GMT - U.S. Treasury bonds could fall further in value, pushing yields higher, which has led Commmerzbank to recommend clients to sell German government debt at a higher price than the previous trade. "In view of the U.S. Treasury risks we prefer selling Bunds into upticks," the German bank says, adding that Treasury bond yields rose recently, receiving fresh fuel from much stronger-than-expected producer prices and concessions around another sluggish 30-year bond auction. The 10-year bund yield trades last at minus 0.462%, according to Tradeweb. Bond prices fall when yields rise. (lorena.ruibal@wsj.com)

0631 GMT - The Nikkei Stock Average ends 0.1% lower at 27977.15, dragged down by falls in energy and airline stocks, despite some gains in steel stocks. Eneos Holdings lost 3.8% and ANA Holdings fell 1.7%. Meanwhile, JFE Holdings gains 9.3% after it boosts fiscal-year revenue and net-profit views. Meanwhile, the broader Topix index added 0.1% to 1956.39. Investors remain focused on earnings as the season winds down. The USD/JPY is at 110.38 compared with 110.44 as of Thursday 5 p.m. Eastern Time. There are no trades for the 10-year Japanese government bond. (kosaku.narioka@wsj.com; @kosakunarioka)

0619 GMT - USD/SGD ticks up in afternoon Asia trade amid safe-haven demand for the greenback. Demand is being spurred by concerns over the surge of Covid-19 and its Delta variant, and the imposition of virus-related restrictions in the region. Investors seem to be preferring the safety of the greenback into the weekend, Oanda says, noting media reports of China's virus-containment measures across the country, including at Shanghai and Ningbo, two of the world's busiest ports. USD/SGD is up 0.1% at 1.3591. (ronnie.harui@wsj.com)

0542 GMT - Lockdowns in Australia since late May have cost the country around A$17 billion, with New South Wales at around A$9 billion assuming its lockdown ends at the end of August. Victoria's three lockdowns have cost nearly A$5 billion, says AMP Capital. 3Q GDP growth is forecast to contract by 2.5% on quarter, far worse than the RBA's current 3Q estimate for a 1.0% contraction, and growth through 2020 will be a soft 2.5% on year. But even this is already looking optimistic, the investment house says. (james.glynn@wsj.com ; @JamesGlynnWSJ)