Treasury yields tumble as Trump talks up Iran ceasefire plan
CNBC • • business
Key Points:
- U.S. Treasury yields dropped sharply on Wednesday as investors reacted to reports of a proposed plan to end the Middle East conflict, with the 10-year yield falling over 6 basis points to 4.324%.
- The 2-year Treasury yield, sensitive to Federal Reserve rate decisions, declined more than 5 basis points to 3.879%, while the 30-year bond yield dipped over 4 basis points to 4.895%.
- The bond rally partially reversed Tuesday's yield spike caused by weak demand at a $69 billion bond auction, the lowest since March 2025.
- Reports emerged that Iran received a U.S. 15-point peace plan aimed at ending the Middle East conflict, although Iran denied engaging in ceasefire talks; energy prices also fell sharply amid news that Iran would allow non-hostile ships through the Strait of Hormuz.
- Market volatility reflects ongoing investor caution about inflation risks and the Federal Reserve's potential pause in interest rate cuts, with upcoming mortgage rate data expected later Wednesday.
