Treasuries rally on Iran deal; Poland scrambles jets; Nikkei jumps 3.4%

U.S. Treasuries rallied across the curve after a deal to end the Iran war led investors to dial back expectations for Federal Reserve rate hikes, Bloomberg reported. The move came as risk appetite returned to global markets, with Japan’s Nikkei futures surging 3.4% in early trade. Separately, Poland activated military aviation operations and scrambled fighter jets in response to a Russian attack on Ukraine, with ground-based air defenses and radar units reaching full readiness.

Treasuries rally as Iran war deal reduces Fed rate-hike expectations

U.S. government bonds rallied across the curve after a peace deal ending the Iran war reduced expectations for Federal Reserve rate hikes, according to a Bloomberg report. The yield on the benchmark 10-year note fell sharply as traders reassessed the monetary policy outlook. The deal, which includes an immediate ceasefire and reopening of the Strait of Hormuz, was welcomed by UN Secretary-General Antonio Guterres.

UN chief Guterres welcomes U.S.-Iran peace deal

UN Secretary-General Antonio Guterres welcomed the U.S.-Iran peace deal, calling it a critical step toward a peaceful settlement of the conflict. The agreement includes an immediate ceasefire and the reopening of the Strait of Hormuz, a key waterway for global oil shipments. Guterres urged both parties to fully implement the terms and to continue dialogue.

Poland scrambles fighter jets, activates military aviation after Russian attack on Ukraine

Poland activated military aviation operations and scrambled fighter jets, with ground-based air defenses and radar units reaching full readiness in response to a Russian attack on Ukraine. The Polish Defense Ministry said the measures were precautionary and aimed at ensuring the security of Polish airspace. No incursions into Polish territory were reported.

Stepson of Norway’s crown prince to hear verdict in rape trial

The stepson of Norway’s crown prince is scheduled to hear the verdict in his rape trial. The defendant, who has not been named publicly due to Norwegian privacy laws, faces charges related to an alleged incident in Oslo. The court is expected to deliver its ruling later today.

Japan’s Nikkei futures jump 3.4% as risk appetite returns

Japan’s Nikkei futures surged 3.4% in early trade, signaling a strong open for Asian equities as risk appetite returned to markets. The rally followed the U.S.-Iran peace deal and a broader rebound in global risk assets. Investors also looked ahead to corporate earnings and central bank policy signals.

What to Watch

Markets will monitor the implementation of the U.S.-Iran ceasefire and any further military developments in Eastern Europe. The verdict in the Norwegian rape trial is expected later today. Asian equity markets are set to open higher, with Japan’s Nikkei leading gains.