Global Bonds Rally as Oil Falls on Hopes for US-Iran Deal

Global bonds rallied as the prospect of a peace deal between the US and Iran drove down energy prices, curbing bets on interest-rate hikes as inflation expectations eased.

The advances stretched from Germany and the UK to the US, wish global debt jumping after an Axios report that the US and Iran are closing in on a one-page memo to end the war. UK gilts led the rally with long-bond yields retreating from their highest level since 1998. The moves pushed the US 10-year yield lower by as much as nine basis points to 4.33%, while Germany’s dropped as much as 10 basis points. Traders priced in less interest-rate tightening by major central banks as oil prices slid.