Donald Trump told G7 delegates in France that every hint of peace with Iran sent the stock market soaring. Investors have taken his signals as buying cues; since he first claimed the war would end in “two or three weeks” in early April, US equities have risen roughly 14% on a smooth trajectory. The rally dwarfs any dip‑buying strategy for investors.

In contrast, US Treasury prices have not recovered from the war‑induced sell‑off, keeping yields elevated in the United States. Bond investors ignored cease‑fire hints, leaving the market 30% below its pre‑conflict level. Pension funds, insurers and sovereign wealth pools are trimming exposure, wary of political meddling in monetary policy as new Fed chair Kevin Warsh signals a tougher inflation stance.

Meanwhile, demand for dollars‑denominated debt is broadening. Officials in Germany, the UK, Italy, Canada and the EU reported new interest from Middle‑East and Asian investors previously a marginal buyer class. Canada’s debt chief praised “very strong” appetite for a recent US‑dollar issue, hinting at early competition for the US market. The bond outlook now hinges on diversified funding sources in the near term.