of 10 year Treasury bill Yields fell on Monday after President Donald Trump said further military strikes against Iran had been postponed as a result of “productive” negotiations between the warring sides.
The benchmark yield fell more than 6 basis points to 4.326%. Benchmark stocks hit their highest levels since July in early trading as traders fear the Federal Reserve won’t cut interest rates this year and may actually raise them next. It then plunged, but then leveled off and fell again as traders processed the news.
Yield of policy-sensitive stocks 2 year memo It fell more than 6 basis points to 3.831%. of 30 year bond The yield fell more than 5 basis points to 4.909%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
In a post on Truth Social, President Trump said the United States and Iran have had a “very helpful and productive dialogue” regarding the conflict, which began in late February.
“Based on the tenor and tone of the deep, detailed, and constructive conversations that have continued throughout this week, I have directed the Department of the Army to postpone any military strikes against Iranian power plants and energy infrastructure for five days, subject to the success of ongoing meetings and discussions,” President Trump added.
Indeed, Iranian state media reported shortly thereafter that the regime denied that any direct or indirect talks had taken place between the United States and Iran.
“For stock prices to stabilize, not only oil prices need to be taken into account, but bond yields also need to stabilize,” Mislav Matejka, equity strategist at JPMorgan, said in a note on Monday.
This week’s economic indicators are almost empty. The S&P Global Flash U.S. PMI report, which assesses the economic health of the U.S. manufacturing and services sectors, will be released Tuesday morning.
February’s PMI report showed a slowdown and job growth in services companies, and economists expect further weakness. Numbers above 50 tend to indicate growth, with the latest report predicting it to be 50.5, down from 51.9 in February.
The University of Michigan will release its consumer confidence index for March on Friday.
Traders are concerned about hostilities in the Middle East. President Trump said on Saturday that he would “destroy” Iran’s power plants if it did not fully reopen the strait within 48 hours.
Iran responded with escalating threats targeting energy infrastructure and desalination facilities in the Gulf. Iranian Parliament Speaker Mohammad Berger Ghalibaf also said on Saturday that companies that buy U.S. bonds and “finance the U.S. military budget” could be considered legitimate targets, along with military bases.
—CNBC’s Holly Ellyatt and Fred Imbert also contributed to this report.
