Leslie Falconio, head of taxable fixed income strategies at UBS Global Wealth
Management, said the U.S.-Iran agreement drove oil prices lower and strengthened
Treasures, reducing pressure for Fed rate hikes. She noted two-year Treasury
yields had risen earlier because markets had priced nearly a 100% probability of
a December hike; with oil retreating, markets are retracting those expectations
and two-year yields are pulling back. New Fed chair Kevin Warsh will front
over his first rate decision this week; Falconio expects the FOMC to formally
drop an easing bias, making the policy outlook more hawkish. She still expects
the Fed's next policy move will be rate cuts in 2027.
