US Bonds Gain as Iran Withdrawal Hopes Fuel Fed Rate-Cut Bets

US Treasuries climbed on speculation that an imminent end to the war in Iran may pave the way for the Federal Reserve to start cutting interest rates again.

The yield on two-year and 10-year government notes dropped as much as six basis points to 3.73% and 4.26%, respectively, as Brent futures fell below $100 a barrel. The Bloomberg Dollar Spot Index declined as much as 0.4%.