US Treasuries yields fell sharply on Tuesday as investors cheered former President Trump's claim that talks with Iran were entering their “final stages.” The comment sparked a rally in government bonds, pushing the 10‑year note down several basis points and lifting the broader Treasury market to its highest level in weeks after a week of volatile risk sentiment overall.

Investors linked the diplomatic progress to a potential easing of the recent surge in global energy prices, which has been feeding inflation concerns across major economies. A de‑escalation between Washington and Tehran could restore oil supply confidence, lowering input costs for manufacturers and tempering the price pressures that have kept central banks on high‑rate watch throughout 2024 for investors.

Bond traders responded by pushing yields lower, narrowing the spread between Treasuries and riskier assets and prompting a modest shift into equities. For portfolio managers, the move offers a rare window to lock in higher‑coupon bonds before any potential rally in rates should negotiations stall. The market now significantly prices a near‑term probability of a US‑Iran détente at roughly 30%.