10-year Treasury yield edges lower as Iran peace hopes fuel relief rally

The yield on the 10-year Treasury shed 1 basis point to 4.301%. The 2-year yield dropped more than 2 basis points to 3.778%, while the 30-year Treasury yield was up less than a basis point at 4.898%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Tensions thawed on Tuesday, with The Wall Street Journal reporting that Trump told aides he was willing to end the war even if the Strait of Hormuz remains largely closed for now. Later, the New York Post reported that the President believes the Iran war will likely end soon and other nations will handle the Strait.

U.S. equities posted their best daily performance since May in the prior trading day as investors were buoyed by the developments. The blue-chip Dow added more than 1,100 points, or about 2.5%. The S&P 500 advanced 2.9%, while the Nasdaq Composite jumped 3.8%.

Elsewhere on Wednesday, payrolls processing firm ADP reported that employment growth in the private sector was better than expected in March, coming in at 62,000. Though that marked a decrease of 4,000 from February’s upwardly revised figure, it was above the Dow Jones forecast for 39,000.

— CNBC’s Lisa Kailai Han also contributed to this report.