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Treasuries Rally as Traders Trim Fed Hike Bets After Iran Deal

Treasuries Rally as Traders Trim Fed Hike Bets After Iran Deal
Key Points

Treasuries Rally as Traders Trim Fed Hike Bets After Iran Deal 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. Yields dropped on every tenor, led by shorter maturities which 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.

Treasuries Rally as Traders Trim Fed Hike Bets After Iran Deal 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. Yields dropped on every tenor, led by shorter maturities which 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.
Treasuries Rally (ORG) Iran (LOCATION) Federal Reserve (ORG) the Iran war (EVENT) Fed (ORG) Brent (PERSON)
Originally published by Bloomberg Markets Read original →