Bonds & Stocks
Stocks climbed around the world, joining gains in bonds as oil dropped on hopes the US and Iran are nearing a deal to end a war that has jolted markets and clouded the economic outlook. The S&P 500 rose 0.8%. The yield on 10-year Treasuries declined six basis points to 4.36%.
Economy
The US Treasury signaled it’s still comfortable issuing the shortest-dated debt to meet escalating government borrowing needs — even as warnings emerge about the strategy’s risks. The Treasury anticipates keeping nominal note and bond sale sizes unchanged “for at least the next several quarters,” the department said in a quarterly statement on debt policy.
World
Iran is evaluating a new proposal from the US to end their near 10-week war, according to a person familiar with the matter, as China added its voice to global pressure to wrap up the conflict. Washington’s one-page memorandum of understanding will, if Iran accepts it, lead to the gradual reopening of the Strait of Hormuz and lifting of the American blockade on Iranian ports.