Treasuries Reverse Gains Amid Strong Economic Data Before Trump Address

U.S. Treasuries erased earlier gains as solid economic data offset expectations of an end to the Iran war, influencing market sentiment ahead of a key Trump speech. Yields edged higher following a rebound from recent lows.

• Treasuries erased gains due to strong economic data showing steady hiring and consumer spending.
• Yields increased by one to two basis points after rebounding from recent lows.
• The potential end of the Iran war had previously driven yields to their lowest levels in over a week.
• Crude oil prices, which had dropped, also influenced Treasury yields.
• Treasury yields were linked to a war-related surge in oil prices due to inflation concerns and delayed Fed rate cuts.
• Market attention shifts to Trump's speech for potential policy insights.