Treasury Yields Fall as US-Iran Talks Continue
US-Iran Talks and Market Impact
Treasury yields slipped slightly as hopes for a US-Iran deal to reopen the Strait of Hormuz clashed with tough rhetoric from both sides. Oil prices fell 5%, though ship traffic across the strait has slowed. Markets are watching for key data releases tomorrow.
Key Economic Data Ahead
Weekly jobless claims are expected to rise to 213,000 from 209,000. April durable goods orders growth is forecast to accelerate to 3.5% from 0.8%. The first-quarter GDP growth estimate is expected to remain unchanged at a 2% annualized pace, while PCE inflation is forecast to accelerate to 3.8% from 3.5%.
Treasury Market Movements
The 10-year Treasury yield fell 0.010 percentage point to 4.480%, and the two-year yield slipped 0.015 percentage point to 4.031%. The WSJ Dollar Index rose 0.1%.
Crypto Markets Cautious
Bitcoin fell 1.4% to $74,899, with ETF outflows extending to seven consecutive days. Coinbase launched AI-powered autonomous crypto trading. Mastercard received a BitLicense from New York regulators.
Corporate Bonds and Commodities
Morgan Stanley remains cautious on investment-grade corporate bonds due to heavy issuance forecasts. Oil futures hit one-month lows, with WTI below $90 a barrel.
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