Bond Rally Fades as Iran Says Ceasefire Violated

Treasuries wiped out an early rally after an Iranian official said the ceasefire deal with the US had been violated.

US government debt had gained overnight, and traders slightly increased their wagers on a Federal Reserve interest-rate cut this year, after the announcement on Tuesday evening of a two-week truce between the US and Iran. The ceasefire — after weeks of war — caused oil to plunge, easing some inflation concerns.