Trump's comments sent European bonds surging, with yields falling sharply across the board.

Oil Plunges, Bonds Surge as Trump Signals End to Iran War Within Weeks

Crude prices tumbled and bonds soared after President Trump said he expects the war with Iran to wrap up in two to three weeks. Investors are betting on a de-escalation.

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French, Italian, and UK government bond yields all dropped by 10 basis points or more. Germany's 10-year benchmark yield fell 6 basis points to 2.94%—its lowest level since March 18th. Markets are now watching closely to see if the talk translates into a real cooling-off path, strategists at ING, including Benjamin Schroeder, wrote in a note. But one big question remains: how fast can energy supplies fully recover given the damage already done?

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