Overnight Weakness (But Bouncing Back) After Peace Talks Fail

Heading into the weekend, the big news was that the U.S. and Iran would meet in Pakistan to negotiate a peace deal. But by Sunday morning, the talks had failed over an impasse on Iran’s nuclear enrichment program. The market-mover, however, was the U.S. response: a blockade of the Strait of Hormuz. This sent oil prices sharply higher with 10yr yields following (albeit not in as threatening a way as we’ve seen on many…