Treasury Yields Fall as Iran Deal Drives Fed Rate Outlook Change

U.S. Treasury yields declined on Monday following a preliminary peace agreement between Washington and Tehran, which reshaped investor expectations for inflation and interest rates. The yield on the 10-year U.S. Treasury note fell over 2 basis points to 4.459%, while the 2-year note yield decreased more than 3 basis points to 4.054%. Meanwhile, the 30-year Treasury bond yield dropped more than 1 basis point to 4.958%. The announcement coincided with a 5% drop in U.S. crude prices, as President Trump reopened the Strait of Hormuz passageway, impacting oil market dynamics.