Trump says progress has been made in US-Iran negotiations, US Treasury bonds rise across the board

According to Golden Ten Data on May 26, after the public holiday break, the U.S. financial markets resumed trading as investors became more optimistic about a possible agreement between the U.S. and Iran, causing U.S. Treasury yields to fall across the board. The U.S. two-year Treasury yield fell by 7 basis points to 4.05%, the ten-year yield fell by 7 basis points to 4.49%, and the thirty-year yield dropped by 5 basis points to 5.02%. Previously, Trump said that negotiations with Iran on extending the ceasefire and reopening the Strait of Hormuz were "progressing smoothly." Abbas Keshvani, Head of Asia Macro Strategy at RBC Capital Markets in Singapore, said: "Given that market hopes for a deal were dashed before, caution will remain. But progress in the negotiations could lead to further declines in energy prices and inflation expectations, thereby lowering yields."