Iran War Headlines
What fueled yesterday’s late bond rally were more headlines about a peace deal with Iran. There were rumors of such a deal earlier in the week, but details about it started to hit the wires midday yesterday. They supposedly include fully reopening the Strait of Hormuz so oil and other shipping can pass through, bringing down oil costs and also extends the current ceasefire for 60 days, along with other points. We also got confirmation of the Memorandum of Understanding from multiple sources, including people in the White House. That said, President Trump has not said whether it is acceptable to him, so there is a chance the deal could fall apart. This is likely why we saw a noticeable rally in bonds, not a significant rally.