Bonds & Stocks
Wall Street kicked off the holiday-shortened week with stocks joining bonds higher as hopes for a peace deal between the US and Iran overshadowed military strikes in the Persian Gulf. The S&P 500 rose 0.6%. The yield on 10-year Treasuries declined eight basis points to 4.48%.
Economy
A key Treasury yield gap shrank to its tightest level in a year as traders ramped up bets the Federal Reserve may keep interest rates higher for longer under new chairman Kevin Warsh. The spread between five-year and 30-year yields — a closely watched gauge of the premium investors demand for holding longer-dated debt — narrowed to 81 basis points on Friday.
World
US and Iranian forces clashed near the Strait of Hormuz overnight, highlighting the tension between the two sides even as they tout progress toward an interim peace deal.