US Treasury yields fell on Wednesday as the prospect of a resolution to the Iran conflict boosted investor sentiment.
yield of 10 year treasury It fell more than 2 basis points to 4.285%. The 2-year Treasury yield fell more than 3 basis points to 3.762%, while the 30-year Treasury yield fell less than 1 basis point to 4.886%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The move came after President Donald Trump said on Tuesday that U.S. troops would leave Iran within “two or three weeks,” adding that the United States would end the war “with or without a deal.”
Tensions eased on Tuesday, with the Wall Street Journal reporting that Trump told aides he was ready to end the war even if the Strait of Hormuz remained largely closed for the foreseeable future. Later, the New York Post reported that the president believes the Iran war will likely end soon and that other countries will resolve the strait.
Investors liked these developments, and U.S. stocks posted their best daily performance on the previous trading day since May. The Dow Jones Industrial Average of blue-chip stocks rose more than 1,100 points (about 2.5%). The S&P 500 rose 2.9% and the Nasdaq Composite rose 3.8%.
Elsewhere on Wednesday, traders were focused on the February retail sales report, the March ADP private sector employment report and the March ISM manufacturing index.
— CNBC’s Lisa Kailai Han also contributed to this report.
