US 10Y Yield Falls on Iran Deal Optimism
2026-05-06 06:39
By
Jam Kaimo Samonte
1 min. read
The yield on the US 10-year Treasury note declined by about 5 basis points to 4.38% on Wednesday, as rising optimism over a potential agreement between Washington and Tehran eased inflation concerns.
Defense Secretary Pete Hegseth said the ceasefire established nearly a month ago remains in place, while Secretary of State Marco Rubio confirmed that offensive operations have concluded as Washington shifts its focus to securing shipping routes in the Strait of Hormuz.
President Donald Trump also announced a temporary pause in a US-led effort to assist stranded vessels in exiting the strait, allowing time for possible renewed talks with Iran.
Oil prices retreated, helping to temper expectations that the Federal Reserve may need to raise interest rates further to contain inflation.
Market participants now turn their attention to ADP’s private payrolls report for April for signals on labor market conditions, ahead of the closely watched monthly jobs report due Friday.