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Treasuries extend rally as oil retreats ahead of Fed decision

The rally marks a third straight session, with oil weakness tied to expectations for renewed US-Iran diplomatic progress and tanker routes.

Reported · Written up by our desk · Government Bonds

US Treasuries rose for a third consecutive session on Tuesday, extending a rally as investors looked to easing inflation concerns ahead of the Federal Reserve decision, Hedgeweek reports. The tone was supported by a sharp drop in oil prices, which helped investors recalibrate the inflation outlook.

Hedgeweek cited a Bloomberg report that linked the oil move to growing optimism that diplomatic talks between the US and Iran could eventually reopen key tanker routes through the Arabian Peninsula.

With expectations shifting around both energy prices and the Fed meeting, Treasury prices continued higher into the decision.

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