23.03.202611:39:48UTC+00Treasury Yields Move Lower

The yield on the US 10-year Treasury note fell to 4.36% on Monday, after briefly climbing as high as 4.44% earlier in the session. The move reversed when President Trump said the US and Iran had held “productive” talks and announced a five-day pause on strikes against key Iranian energy infrastructure. This decision followed a 48-hour deadline previously given to Iran to fully reopen the Strait of Hormuz, which had been set to expire later today. However, Iran’s Fars News Agency reported that there has been no communication with the US, either directly or through intermediaries. The temporary truce signaled by President Trump drove oil prices sharply lower, easing inflation concerns and putting downward pressure on bond yields. Last week, the benchmark 10-year yield had risen to its highest level since July, as traders scaled back expectations for Federal Reserve rate cuts this year amid worries that persistently elevated oil prices could stoke inflation.