National Australia Bank: US Treasury yield curve may steepen after ceasefire in Iran.

The National Australia Bank has stated that, following the two week suspension of bombings on Iran agreed upon by the US, the short-term performance of US government bonds may outperform longer term bonds in the short term. The bank's interest rate strategy director, Ken Crompton, said: "As the market may readjust, believing that the likelihood of a Fed rate cut is slightly higher than currently priced, there is still room for a further bullish trend." With news seeming to confirm the suspension of bombing operations, Australian and US government bond futures prices have risen.