Treasuries Edge Higher After Trump Threatens to Destroy Iran

US Treasuries held small gains as President Donald Trump issued fresh threats against Iran, with bond traders expecting the Federal Reserve to keep interest rates steady through the rest of the year.

Yield in the $31 trillion market for US government debt were as much as three basis points lower than last week’s closing levels after Trump said he’d ramp up attacks if Iran didn’t meet his deadline — which he extended to Tuesday from Monday — for Tehran to reopen the Strait of Hormuz. Interest-rate swaps showed traders, who wiped out what little remained of their wagers on Fed easing after unexpectedly strong US labor market data on Friday, kept those bets intact.