US Treasury yields fall as Donald Trump hints Iran ceasefire
Business
US Treasury yields dropped on Tuesday as hopes grew around U.S.-Iran negotiations.
President Donald Trump hinted at progress with a possible ceasefire and reopening the Strait of Hormuz, making government bonds more attractive.
The 10-year yield slid to 4.51%, and both two-year and 30-year yields also fell.
Next Fed hike seen March 2027
Easing inflation concerns added to the demand for Treasuries, lowering pressure on the Federal Reserve to keep rates high.
Still, markets stayed cautious after reports of US and Israeli strikes on Iranian vessels stirred uncertainty.
Traders now expect the next Fed rate hike in March 2027 instead of December 2026, as slower economic growth and less inflation fear support longer-term bonds.