Treasuries Rise With Focus on Potential for US-Iran Diplomacy

Treasuries gained and oil prices declined on the prospect of Middle East diplomacy, which helped drive rallies for most major government debt markets.

The advance pushed US yields on Wednesday lower by two to four basis points across maturities, as the White House said that peace talks were ongoing with Iran. The gains broadly held even after Tehran rejected a ceasefire and demand was weak for the second of this week’s three longer-term debt auctions. US benchmark crude oil also pared a drop of more than 6% to less than 2%.