Bond traders opened the week with a clear bet that the Federal Reserve will keep rates on hold for the next year, pushing Treasuries to a calm stance.

The market’s steadiness comes as President Donald Trump extends Iran’s deadline to reopen the Strait of Hormuz, adding geopolitical weight to the fixed‑rate outlook. Investors see the Strait’s status as a key risk factor.

Treasury yields stayed flat, reflecting confidence that the Fed’s policy pause will continue. Any shift in the Strait’s status could ripple through energy prices and global liquidity.

For institutional clients, the pause offers a window to reassess duration strategies while geopolitical uncertainty keeps a low‑risk premium in play.