The US-Iran ceasefire triggered a sharp plunge in oil prices and boosted market expectations that the Federal Reserve will resume rate cuts, with short-dated US Treasuries leading gains. During the Asian trading session this morning (8th), the yield on the two-year US Treasury fell by 6 bps to 3.73%, while the yield on the 10-year US Treasury declined by 3 bps to 4.26%.Overnight index swaps indicate that the probability of a Federal Reserve rate cut before year-end is about 60%, compared with nearly zero at the start of this week. Before the US and Israel began attacking Iran, the market had expected the Federal Reserve to cut rates more than twice. (mn/da)Related NewsAPI Crude Oil Stock Change for Apr/17 in the United States is -4.400M, lower than the previous value of 6.100M. The forecast was -1M.
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