By 3 p.m. ET, bonds had reached their best levels in two weeks after a sharp rally just after 10 a.m. on reports a peace deal had been approved, pending Trump's final sign-off.
Core PCE for April rose 0.2% versus a 0.3% forecast, helping bonds recover from overnight losses, but most of the day's trading volume followed the peace-deal headlines rather than the economic data.
The 10-year Treasury yield moved from 4.507% overnight to 4.45% late in the session, while mortgage-backed securities swung from down more than an eighth of a point to up 5 ticks.
Reports later in the day said Iran had not fully signed off on the deal, yet the market largely held its gains after earlier weakness tied to ongoing hostilities.