Federal Reserve Chairman Kevin Warsh departs from the East Room of the White House after being sworn in on May 22, 2026.
Aaron Schwartz | AFP | Getty Images
US Treasury yields fell on Monday as the announcement of a preliminary peace deal between the US and Iranian governments changed investors’ inflation expectations and interest rate outlook.
The yield on the 10-year Treasury note, a key measure of U.S. government borrowing, fell more than 4 basis points to 4.441%.
The yield on the two-year Treasury note, which is more closely tied to the Federal Reserve’s short-term interest rate policy, fell more than 5 basis points to 4.035%. The yield on 30-year government bonds fell 3 basis points to 4.942%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
President Donald Trump said on social media late Sunday that the deal with Iran is “now done.” Pakistan Prime Minister Shehbaz Sharif said a formal signing ceremony would be held in Switzerland on Friday.
President Trump also said he had approved the reopening of the vital Strait of Hormuz shipping lane, causing oil prices to fall on Sunday. As a result, US crude oil prices fell by 5%.
The announcement came after an exchange of gunfire between Israel and Tehran-backed Hezbollah in Lebanon, adding further pressure to the fragile ceasefire between the United States and Iran.
Investors are focusing on economic data on home sales and retail sales this week. According to CME’s FedWatch tool, which will also closely monitor the Federal Reserve’s policy meeting, federal funds futures show a more than 98% chance of ending with interest rates on hold.
“Wednesday’s Federal Reserve meeting on monetary policy changes will itself be a snooze, given the recent rise in inflation,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “We are looking specifically at Mr. Warsh’s first press conference, trying to understand what type of communicator he will be and what details he will cover in the press conference.”
— CNBC’s Alex Harring also contributed to this report.
