The U.S. Treasury yields fell sharply on Wednesday after reports suggested Washington and Tehran could be nearing a peace agreement, easing fears around the ongoing Middle East conflict. According to Axios, the U.S. and Iran are discussing a one-page deal aimed at ending the two-month-long war.
The yield on the benchmark 10-year U.S. Treasury dropped more than 6 basis points to 4.0075%, while the 2-year and 30-year Treasury yields also moved lower in early trading. The decline reflected growing investor confidence and reduced demand for safe-haven assets.
President Donald Trump announced that “Project Freedom,” the U.S. military operation assisting commercial ships through the Strait of Hormuz, had been paused. In a Truth Social post, Trump said “great progress” had been made toward a final agreement with Iran.
Treasury yields tumble on report of U.S.-Iran peace plan https://t.co/HOWHYYqcpo
— CNBC (@CNBC) May 6, 2026
Oil prices also declined sharply. West Texas Intermediate crude futures fell 6% to $95.57 per barrel as concerns over supply disruptions eased.
Investors are also watching upcoming U.S. economic data, including mortgage rate figures and private payroll numbers from ADP. Meanwhile, the latest JOLTS report showed U.S. job openings declined to 6.87 million in March.
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TIPP Staff
