Treasuries rose after reports that the US and Iran reached an agreement to extend a truce and work toward ending a three-month war that’s ignited an oil-driven surge in inflation.

Treasuries fell Wednesday after a gauge of private-sector employment growth left intact expectations that the Federal Reserve will raise interest rates this year.

Treasuries rose as falling oil prices overshadowed middling demand at the first of three longer-term US debt auctions this week.

Unswayed by strong US jobs data released Friday, economists at Citigroup Inc. are maintaining their increasingly lonely prediction that the Federal Reserve will cut interest rates three times this year.

Treasuries pared declines, pulling two-year yields back from a more than 15-month high, as reports of a ceasefire between Israel and Iran eased the upward pressure on oil prices.

The US government bond market notched a weekly advance, recouping some of its losses since the start of the war on Iran, as oil prices declined in anticipation of an agreement to end the conflict.