Treasury yields tumble as Middle East tensions ease
Treasury yields fell on Monday after the United States and Iran halted hostilities in the Middle East over the weekend and energy prices fell.
Return of the key 10-year Treasury bond The index, a key gauge for mortgages, auto loans and credit card debt, was down more than 3 basis points in early trading at 4.6406%.
Short- and long-term yields also declined. yield on 2-year Treasury billThe interest rate, which typically tracks short-term Federal Reserve interest rate decisions, fell 2 basis points to 4.3030%.
Meanwhile, 30 years of Treasury The yield, which traditionally moves in response to geopolitical events, fell more than 3 basis points to 5.1260%.
One basis point is equal to 0.01%, or 1/100 of 1%, and yields and prices move in opposite directions.
Monday’s drop in borrowing costs came after the United States and Iran exchanged fire for a third consecutive night.
Oil prices reversed rapidly due to the influence of the USA West Texas Intermediate Futures It dropped 5.34% to $84.55. Global benchmark Brent crude oil Oil, which approached the level of $ 100 per barrel last week, was last seen at $ 91.20, with a decrease of 5.77%.
These moves come as investors eagerly await the Fed’s final interest rate decision on Wednesday. Consensus estimates suggest the rate-setting Federal Open Market Committee will leave rates unchanged at 3.75%.
While markets weigh how the developing situation in the Middle East will shape the Fed’s interest rate hike decision, investors are also watching other economic data to be released this week.
These include the core PCE price index for June, the latest quarterly GDP report, and new order data for U.S.-made durable goods.
