U.S. Treasury yields plunge 10 basis points amid Iran ceasefire
U.S. Treasury yields fell sharply early Wednesday following a two-week ceasefire in the Middle East conflict.
Yield 10-year US Treasury rating – a gauge of government debt – fell more than 10 basis points to 4.2399%
Shorter and longer-term yields also declined as investors piled into U.S. bonds. yield on 2 year Treasury The bond, which more closely tracks short-term Federal Reserve interest rate movements, fell 11 basis points to 3.7193% as of 3:35 a.m. ET. 30 year Treasury bond Its yield fell 7 basis points to 4.8482%.
One basis point is equal to 0.01%, or 1/100 of 1%, and yields and prices move in opposite directions.
The drop in borrowing costs stems from concerns about inflationary pressures created by the easing of five weeks of conflict.
Following the end of the conflict, energy prices reversed rapidly. Foreign Minister Abbas Araghchi said in a statement that under the terms of the agreement, President Donald Trump agreed to stop attacks on Iranian infrastructure, while Tehran will allow the safe passage of ships through the critical Strait of Hormuz waterway “through coordination with the Iranian Armed Forces.”
Brent crude oilOil, the global benchmark, fell below $100 per barrel in early deals, falling 13.5% to $94.49. WE West Texas Intermediate It fell almost 15% to $96.20 per barrel.
Minutes of the Federal Open Market Committee’s March meeting will be released later Wednesday as investors recalibrate their bets on further Fed rate cuts. Markets will also closely watch the Mortgage Bankers Association’s fixed interest rate for the last 30 years (a key barometer of U.S. home affordability) to be released later.
Core monthly and annual inflation data for March will be announced on Friday.
