Yields decline slightly as US-Iran ceasefire remains in place. Treasury yields fell today as the US said its ceasefire agreement with Iran is still in place despite yesterday’s escalation where both nations fired at each other near the Strait of Hormuz. The 2-year yield closed 1bp lower at 3.94% while the 30-year yield closed 3 bps lower at 4.99%. Meanwhile, equities rallied on the news of the continued ceasefire, with the S&P 500 closing 0.81% higher at 7,259 to hit a new all-time high. Energy prices also saw some relief, with Brent crude now trading around $110 per barrel, down from $114 yesterday.
US says Iranian attacks did not breach ceasefire. After yesterday’s Iranian attacks put the US-Iran ceasefire agreement at risk, US Defense Secretary Pete Hegseth affirmed that the ceasefire is still active. Hegseth also shared that “Project Freedom,” the US initiative to lead stranded, neutral ships through the Strait of Hormuz, was a temporary operation and that the US naval blockade remains in effect. Meanwhile, Iran issued a warning against vessels moving through the Strait of Hormuz without permission and launched a new protocol where ships can receive an official email stating approval to move through the strait. President Masoud Pezeshkian said, “The problem is that while the US pursues a policy of maximum pressure against our country, it also expects the Islamic Republic of Iran to come to the negotiating table and ultimately submit to its unilateral demands – an equation that is impossible.”
Hiring rebounds with US job openings steady in March. JOLTS data released today showed US job openings at 6.87 million in March, slightly above estimates of 6.85 million but down from 6.92 million in February. The hiring rate also ticked up to 3.5%, rebounding after February’s reading marked a six-year low. Despite the stronger than expected print, job openings declined in the professional and business services industries, and the JOLTS voluntary quits rate rose slightly to 2.0%. The layoff rate also edged higher, to 1.2%. The April government jobs report is set for release Friday, with forecasts expecting 65k jobs added, down from 178k in March.
