U.S. Treasury futures advanced to their intraday peak, propelled by substantial trading activity, while yields declined after President Trump announced the cancellation of planned strikes against Iran, stating that the final points of an agreement had been approved. Approximately 100,000 contracts of the September 10-year Treasury futures changed hands within a three-minute window, marking the largest trading burst of the session.
Treasury yields fell across the curve, dropping between 4 and 6 basis points. Overnight index swaps linked to Federal Reserve meeting dates shifted in a dovish direction, pricing in about 24 basis points of rate hikes by year-end, compared to 27 basis points at Wednesday's close.
WTI crude oil futures dropped to their session low, falling roughly 3% from Wednesday's settlement, a move that supported the rally in government bonds.
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