Treasuries surged across the curve after traders cut back expectations for Fed rate hikes following news of an Iran deal that could end the regional conflict.

The rally reflected a shift in risk appetite as investors reassessed the likelihood of tightening monetary policy. A lower probability of further rate increases lifted bond yields, especially at the 10‑year benchmark, which moved up by about a quarter‑point.

Market watchers noted that the easing of geopolitical tension removes a key source of uncertainty that had previously weighed on fixed‑income sentiment. The move also signals confidence that the U.S. can navigate the crisis without resorting to tighter financial conditions.

Corporate borrowers and pension funds benefit immediately from the dip in borrowing costs, while the broader economy may see a modest boost as cheaper financing fuels investment.