Markets Drop as Trump Rejects Iran Hormuz Proposal, Pushing 2-Year Yield to 4.90%
Updated
Updated · Bloomberg · Sep 28
Markets Drop as Trump Rejects Iran Hormuz Proposal, Pushing 2-Year Yield to 4.90%
3 articles · Updated · Bloomberg · Sep 28
Summary
Shorter-maturity Treasuries led a broad selloff after Trump rejected Iran’s latest offer to reopen the Strait of Hormuz, reversing some of Friday’s relief-driven gains.
The 2-year Treasury yield rose 5 basis points to 4.90% and the 10-year added 4 basis points, as higher oil prices reinforced expectations the Federal Reserve may need to keep fighting inflation.
Stocks and bonds both fell while oil climbed, but precious metals sold off, underscoring how the renewed impasse shifted investors away from last week’s phased-deal optimism.
Friday’s rally had been fueled by hopes that U.S. and Iranian negotiators were exploring a staged agreement to reopen the waterway, leaving markets again hostage to swings in Hormuz diplomacy.