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Treasury yields swing as U.S.-Iran deal reports affect oil
After earlier declines tied to renewed U.S.-Iran uncertainty, the 10-year Treasury yield ended near flat around 4.95% and MBS climbed.
Bonds traded volatilely as headlines about the potential reopening of the Strait of Hormuz and shifting expectations for U.S.-Iran diplomacy moved both oil prices and interest rates intraday, Mortgage News Daily reports.
According to the outlet, yields and oil rose steadily after the initial reports, then flipped direction after Donald Trump’s UN speech and subsequent newswires that pointed to contact between U.S. and Iranian delegations and momentum toward a deal.
The outlet said the lack of sweeping or definitive developments was still enough to pressure oil back toward session lows while helping bonds return to positive territory after earlier losses.
By late in the session, Mortgage News Daily reported the 10-year Treasury was roughly unchanged near 4.953%, while mortgage-backed securities rose slightly, with the report citing MBS up a few ticks and the 10-year down about 0.3 basis points near 4.949%.