Yields nearly flat amidst US, Iran talks. Treasury yields traded in a 6-8 bp range today as markets digested ongoing developments between the US and Iran during the UN General Assembly meeting. Yields ultimately ended the day nearly unchanged across the curve, as optimistic signs emerged from US officials following talks with Iran, despite President Trump taking an aggressive stance in his UN speech earlier in the morning. The 2-year and 10-year yield both closed 1bp higher at 4.75% and 4.96%, respectively. Meanwhile, technology stocks such as Nvidia Corp. continued to rally as positive AI sentiment continued, with the NASDAQ rising 0.45% to close at a new all-time high of 27,244.
US-Iran meet during UN General Assembly. President Donald Trump reported that US officials met with Iranian representatives for three hours as the UN General Assembly meeting was underway. Trump said the conversation was “very productive” and shared that Steve Witkoff and Jared Kushner, who had led negotiations with Tehran prior to the start of the conflict, participated today. Witkoff shared, “I feel very good right now,” when asked about the discussions. The sentiment following the meeting was a shift from Trump’s General Assembly speech earlier in the day, where he said, “Will a deal be made with Iran that lets them rebuild and create a far greater country than it ever was before…or do I annihilate the Islamic Republic and do it quickly?” Following the news, Brent crude futures are down almost 2% on the day, trading around $99 per barrel.
Fed’s Barkin, Collins speak in support of recent rate hike. Richmond Fed President Tom Barkin expressed support for the FOMC’s decision last week to hike rates, saying that it will help slow inflation, though noting that price pressures “will take time” to pass. Barkin did not indicate what he believes the Fed should do next but emphasized their commitment to bringing inflation back down to the 2% level. Boston Fed President Susan Collins spoke similarly in favor of last week’s rate hike but also shared that she projects another rate hike by the end of the year, as she sees “increased likelihood” that inflation may stay “notably above 2%.”