U.S. Treasury Yields Decline Amid Optimism Over U.S.-Iran Agreement

U.S. financial markets resumed trading after a holiday break, with Treasury yields falling across the board as investors grew more optimistic about a potential agreement between the U.S. and Iran. According to Jin10, the yield on the two-year U.S. Treasury note fell by 7 basis points to 4.05%, the ten-year yield decreased by 7 basis points to 4.49%, and the thirty-year yield dropped by 5 basis points to 5.02%. U.S. President Donald Trump stated that negotiations with Iran regarding an extension of the ceasefire and the reopening of the Strait of Hormuz were "progressing well." Abbas Keshvani, Asia Macro Strategist at RBC Capital Markets in Singapore, commented, "Given previous disappointments regarding the agreement, the market will remain cautious. However, progress in the negotiations could lead to further declines in energy prices and inflation expectations, thereby lowering yields."