Israel-Iran ceasefire sparks relief rally

THE secondary bond market yesterday saw yields decline as the news that US President Donald Trump announced a ceasefire between Israel and Iran sparked a recovery on the back of renewed buying interest.

- BY WEALTH TRUST SECURITIES

This improvement in sentiment was reflected in both local and foreign stock markets, while global oil prices also declined sharply in response. Initial uncertainty due to conflicting reports gave way as foreign media confirmed that Israel and Iran had indeed agreed to a ceasefire, despite ongoing missile exchanges. Toward the end of the day, yields saw a slight reversal amid profit-taking and reports that Israel alleged Iran had violated the ceasefire—an allegation that was promptly denied by Iranian authorities. However, at the end of the day two-way quotes in the secondary market closed notably lower, supported by robust trading volumes and active market participation despite the rapidly evolving geopolitical backdrop.