Fixed income

Through May 27, the Bloomberg Treasury Index gained 0.7% on the week, on course for its best weekly performance since Feb. 27, the day before the war started.

The hire comes in the wake of InspereX's announcement that it will acquire Financial Northeastern Securities and reflects InspereX's ongoing investment in expanding its distribution capabilities.

US 10-year yields are poised to snap their longest streak of declines in six months, advancing one basis point to 4.49% due to waning optimism that a peace deal may soon be reached to the end the war between the US and Iran.

The 30-year bond's yield, which has closed above 5% every day since May 12, approached 4.98% at one point.

On Monday, Trump said talks with Tehran on an interim deal to extend the ceasefire and reopen the Strait of Hormuz were "proceeding nicely."

The shift gathered pace at the most recent policy meeting in April, when three voters on the Federal Open Market Committee voted against the decision to hold rates steady.

The 30-year rate increased six basis points to 5.18% on Tuesday, a level last seen on the brink of the global financial crisis in 2007, rising alongside US government yields across maturities.

Yields dipped as much as three basis points Monday after Iran's semi-official Tasnim reported that Washington proposed a temporary waiver on Iran oil sanctions.

The yield on the 10-year has eclipsed 4.48% this year, while the 30-year bond yield surpassed 5.03% on May 4. representing more than 50 and 40 bps jumps, respectively.

Treasury two-year yields rose four basis points to 3.93% as oil climbed after the US and Iran rejected proposals aimed at ending the conflict.

Any decline in Japan's Treasury stockpile may put further upward pressure on U.S. yields, which are already being driven higher by surging oil prices and concern the Iran war will widen America's fiscal deficit.

The Treasury anticipates keeping nominal note and bond sale sizes unchanged "for at least the next several quarters," the department said on Wednesday.

Interest-rate swaps showed traders have priced in about a 70% chance of a Fed rate hike by April 2027. That marked a sea-change from before the Iran conflict.

Hawkish votes against the policy statement, which characterized the risks to the economy as balanced, led traders to price in lower chances of a rate cut at any point before 2028.

Yields across maturities rose by four to six basis points, with short-dated tenors most sensitive to Fed rate changes leading the shift.

When Trump put pressure on the Fed this didn't lead to higher inflation expectations, but to lower Treasury yields, a fall in equity prices, a surge in gold and a weaker dollar.

In testimony Tuesday, Warsh avoided answering questions about the near-term path of interest rates, further supporting the market's wait-and-see stance.

The move followed upbeat signals on consumer spending and the labor market, with both the ADP weekly jobs report and March retail sales beating forecasts.

Gauges of bond swings have declined almost every day since late March, as optimism has grown that the US and Iran are moving toward a agreement to end a month-long conflict.

Being a diversified global bank, Goldman Sachs was "broadly seen favorably as a relatively safe haven type of credit," said Tony Trzcinka, an investment grade portfolio manager at Impax Asset Management.