Treasuries Rise as Oil Falls on Signs of US-Iran Accord

Treasuries advanced and benchmark oil prices fell to their lowest levels in more than a month after reports indicated progress toward an accord to end the US-Iran war. The decline in crude prices raised expectations that sustained high inflation could ease.

Traders moved into government bonds as the prospect of lower energy costs reduced inflation concerns. Oil futures dropped sharply on the news, reaching levels last seen more than 30 days earlier.

Lower oil prices could reduce pressure on consumer costs that have remained elevated in recent months. Market participants said the potential relief from energy-driven inflation supported demand for longer-duration Treasuries.