US Treasuries and equities posted gains as oil prices declined amid a temporary ceasefire between the US and Iran. This pause in hostilities has eased geopolitical tensions and reduced disruption risks in the Strait of Hormuz, a critical oil shipping route. The decline in oil prices could help alleviate inflationary pressures and influence bond yields. Market participants appear to interpret this environment as conducive to risk-on sentiment, driving interest in equities and government debt. Prediction markets suggest a slight decrease in the likelihood of crude oil reaching a new all-time high by September 30.
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