Lower oil prices and expectations of reduced pressure on interest rates lifted bond markets, though fresh strikes near the Strait of Hormuz underscored the fragility of the ceasefire.

US Treasury yields fell sharply after Trump signaled progress in Iran negotiations. The 10-year yield dropped 10 bps to 4.57%, with Bitcoin also rallying.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 6 basis points to 4.510%.