US Treasuries Rally as Falling Oil Boosts Interest Rate-Cut Bets

Treasuries gained to wrap up a choppy week of war-driven swings, as easing tensions in the Middle East drove oil lower and prompted traders to boost wagers that the Federal Reserve will cut interest rates this year.

The rally, which pushed yields to their lowest levels in a month, followed Tehran’s pledge to reopen the Strait of Hormuz amid a ceasefire between Israel and Hezbollah, bolstering optimism around broader de-escalation. Brent crude fell below $90 a barrel, stocks rallied and European bond yields declined, mirroring the move in Treasuries.