US Treasury yields fell on Monday and energy prices fell after the US and Iran halted fighting in the Middle East over the weekend.
key yield 10 year Treasury bill Interest rates, a key measure of mortgage, auto loan and credit card debt, fell 4 basis points to 4.639%.
Short-term and long-term yields also fell. yield of 2 year Treasury billwhich typically tracks short-term Federal Reserve interest rate decisions, fell about 2 basis points to 4.309%.
on the other hand, 30 year treasury The yield, which traditionally fluctuates in response to geopolitical events, fell more than four basis points to 5.121%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
Monday’s fall in borrowing costs came after the United States and Iran engaged in a gunfight for the third night in a row.
Oil prices quickly reversed along with the US West Texas Intermediate Futures It fell 8% to $82.18. global benchmark brent crude oil Last week it was close to $100 a barrel, but last week it was down 9.5% to $87.59.
The move comes as traders look ahead to the Federal Reserve’s latest interest rate decision, scheduled for Wednesday. The consensus forecast is that the Federal Open Market Committee, which sets interest rates, is expected to keep interest rates unchanged at 3.75%.
While markets consider how the evolving situation in the Middle East will affect the Fed’s interest rate decisions, investors are also keeping an eye on a number of other economic data releases scheduled for this week.
These include the June core PCE price index, the latest quarterly GDP statistics, and new orders data for US durable goods.
