US Bonds Gain as Iran Withdrawal Hopes Fuel Fed Rate-Cut Bets

US Treasuries climbed on speculation that an imminent end to the war in Iran may pave the way for the Federal Reserve to start cutting interest rates again.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — US Treasuries climbed on speculation that an imminent end to the war in Iran may pave the way for the Federal Reserve to start cutting interest rates again.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The yield on two-year and 10-year government notes dropped as much as six basis points to 3.73% and 4.26%, respectively, as Brent futures fell below $100 a barrel.

The Bloomberg Dollar Spot Index declined as much as 0.4%.Optimism is growing that the Middle East conflict rattling global markets may soon end, after US President Donald Trump said on Tuesday that it could conclude within two to three weeks. He is expected to address the nation on Wednesday night.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 againInterested in more newsletters? Browse here.“For Trump, this is not something he can afford to let drag on, with approval ratings starting to decline and risk continuing to fall,” said Kenta Inoue, a senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. As concern over an energy crisis eases, “the short-end of the yield curve is expected to drop to price in Fed rate cuts while the long end will struggle to rise.”A Bloomberg gauge of US government bond returns lost 1.7% in March, the biggest monthly decline since late 2024.“The dollar has emerged as the main beneficiary from the war in Iran and in the process has emerged as the biggest long in the FX markets,” said Valentin Marinov, head of G-10 FX research and strategy at Credit Agricole. “We are seeing the unwinding of some of these longs right now.”—With assistance from Ruth Carson.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.