Traders Bet on Post-War Calm to Keep Rates in Tight Range (1)

Traders are building up bets that bond market volatility will keep falling, even as a US-Iran peace agreement remains elusive.

After a key measure of US Treasuries volatility fell to pre-war levels, traders continued to place large wagers that stand to benefit from a prolonged period of stability that will keep Treasury yields in a narrow range in coming weeks.

So far this month, US 10-year yields have traded within a range of just 16 basis points as a two-week ceasefire between the US and Iran — originally set to expire Wednesday — helped bring oil prices down from multi-year ...