Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessTreasuries Rally as Traders Trim Fed Hike Bets After Iran DealTreasuries advanced across the curve as investors dialed back expectations for Federal Reserve interest-rate hikes following news of a deal to end the Iran war.Author of the article:Last updated 21 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.61(kssnc[kox3)hq}id6u29p_media_dl_1.png Bloomberg(Bloomberg) — Treasuries advanced across the curve as investors dialed back expectations for Federal Reserve interest-rate hikes following news of a deal to end the Iran war. Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorYields dropped on every tenor, led by shorter maturities that are among the most sensitive to changes in monetary policy. Swaps traders are now pricing in about a 60% chance of a quarter-point Fed hike by December, down from about 80% on Friday. Brent crude fell about 4%, easing concern over inflation. The Treasury gains were fueled by optimism a resolution to the Iran conflict will help reopen the Strait of Hormuz and bring down oil prices. The stakes extend far beyond the $31 trillion Treasury market, given US bonds serve as the global benchmark for borrowing costs, influencing everything from corporate debt to emerging-market assets.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Some of the short positioning in rates will be taken off,” said Matthew Haupt, a hedge fund manager at Wilson Asset Management in Sydney. “Central banks can now be less hawkish, as they can afford to wait and look through any short-term inflation.”Treasury two-year yields fell five basis points to 4.03%, while those on benchmark 10-year notes dropped by the same amount to 4.43%. Yields on 30-year bonds declined as much as five basis points to 4.92%, the lowest since May 7. The US and Iran said they had reached a deal to reopen the Strait of Hormuz, a channel for roughly a fifth of the world’s oil supplies. That will come as some relief for the US where prices are roaring back at the fastest pace in three years, putting the spotlight on new Fed Chairman Kevin Warsh and the central bank’s policies.“In bond markets, based on the observed postwar correlations, a 10% decline in oil prices would lead to an approximate 13-basis point decline in US 10-year Treasury yields,” said Tomo Kinoshita, a global market strategist at Invesco Asset Management Japan Ltd. Asian markets also rallied. Yields on 10-year Australian notes retreated four basis points to 4.78%, while those on similar-maturity New Zealand debt slid seven basis points to 4.40%. Japan’s benchmark 10-year bond yield dropped 5.5 basis points to 2.58%.The Fed is due to announce its next policy decision on Wednesday with economists expecting the central bank to keep its benchmark rate in a range of 3.5% to 3.75% while waiting to see how the Iran war’s energy-price shock ripples through the economy.Treasury investors may not be completely out of the woods just yet.Both the US and Iran were already casting the deal in different lights minutes after it was announced — suggesting how hard it will be to reach an agreement on the outstanding issues around Iran’s nuclear program.“The Strait is expected to reopen on Friday, so there could be something of a nervous wait between now and then,” said Andrew Ticehurst, a strategist at Nomura Holdings Inc. in Sydney. “What Israel does in the interim could be a wild-card too.”(Updates with strategist comment in seventh paragraph and global bond moves in eighth paragraph) Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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