Israel. Army garrison on the border with southern Lebanon.
mark hannaford
Treasury yields fell on Tuesday as traders continued to monitor the latest developments between Iran and the United States.
The yield on the 10-year Treasury note, a key measure of U.S. government borrowing, fell more than 2 basis points to 4.453%.
The two-year Treasury yield, which is more closely tied to the Federal Reserve’s short-term interest rate policy, fell less than 1 basis point to 4.045%. The yield on 30-year government bonds fell more than 2 basis points to 4.964%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The move came in response to rising oil prices. Brent crude oil rose 1.07% to settle at $96 per barrel. West Texas Intermediate futures rose 1.74% to settle at $93.76 per barrel.
Oil prices soared on Monday after Iran’s Tasnim news agency reported that Iranian negotiators had suspended talks with the United States in the wake of Israel’s attack on Lebanon and that Iran may choose to completely close the Strait of Hormuz.
President Donald Trump doesn’t seem concerned about the possibility of peace talks with Iran collapsing, telling CNBC late Monday, “Honestly, I don’t care if the peace talks end.” But late Monday, President Trump said in a post on Truth Social that “negotiations with the Islamic Republic of Iran continue at a rapid pace.”
Investors are struggling to understand how the ongoing fighting between Israel and Hezbollah will affect the chances of a broader ceasefire agreement between Washington and Tehran.
