Treasury Yields, Oil Slip in Asia as Iran Peace Proposal Eases Market

U.S. Treasury yields fell in Asian trading and oil prices edged lower after officials said Washington had sent Iran a 15-point proposal through intermediaries aimed at ending the war.

The proposal was said to focus largely on earlier U.S. demands in exchange for sanctions relief for Iran. According to SEB analyst Elisabet Kopelman, markets responded positively to the still-uncertain possibility of peace, with relief sentiment helping drive moves across rates and energy markets.

Yields declined across the curve, led by the short end. The two-year Treasury yield fell 4.7 basis points to 3.888%, the 10-year yield dropped 3.6 basis points to 4.354%, and the 30-year yield eased 1.8 basis points to 4.922%.

Investors are also watching the Treasury’s $70 billion auction of five-year notes, especially after Tuesday’s softer-than-expected demand at the two-year note sale.