Live Updates > Live Update Details
2026-05-27 21:20:41
[US Treasuries Reverse Supply Pressure, Iranian Draft Memorandum Triggers Safe-Haven Demand Reversal, 60-Day Countdown to Straits Reopening Agreement] US Treasuries retreated from overnight highs on Wednesday, giving back most of their intraday gains during London and New York trading sessions, primarily driven by traders preparing for today's $70 billion 5-year Treasury auction. However, yields reversed course and fell after Iranian state television reported a preliminary informal framework draft of a memorandum of understanding with the US. The draft includes the withdrawal of US troops from the region and the lifting of the naval blockade, Iran's commitment to restore commercial traffic in the Strait of Hormuz to pre-war levels within a month, and the joint management of traffic in the strait by Iran and Oman. A final agreement, reached within 60 days, would be ratified by a binding UN Security Council resolution. Iranian state television also stated that the Islamabad memorandum framework has not yet been finalized, and Iran will not take any steps until it receives "substantiated verification."
