US Treasury yields fell sharply on Wednesday morning after the announcement of a two-week ceasefire in the Middle East conflict.
yields on 10-year US treasury The note – the benchmark for government borrowing – fell more than 10 basis points to 4.2399%
Short- and long-term yields also declined as investors moved into US bonds. yield on 2 year treasury The note, which more closely follows short-term Federal Reserve rate moves, was down 11 basis points at 3.7193% as of 3:35 a.m. ET. 30-year treasury note The yield fell 7 basis points to 4.8482%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yields and prices move opposite to each other.
The fall in borrowing costs came as concerns over inflation pressures stemming from the five-week conflict eased.
Energy prices changed rapidly after the cessation of hostilities. Under the terms of the agreement, President Donald Trump has agreed to halt attacks on Iranian infrastructure, while Tehran will allow safe passage of ships through the vital Strait of Hormuz “through coordination with Iran’s armed forces,” Foreign Minister Abbas Araghchi said in a statement.
crude oilThe global benchmark fell below $100 a barrel in early dealmaking to $94.49 – a decline of 13.5%. We West Texas Intermediate It fell nearly 15% to $96.20 a barrel.
Minutes of the Federal Open Market Committee’s March meeting will be released later on Wednesday, as investors bet on further Fed interest cuts. The market will also be closely watching the Mortgage Bankers Association’s latest 30-year fixed rate – a key barometer of US housing affordability – which will be released later.
Key monthly and annual inflation data for March is due on Friday.
