economy
10-year Treasury yield falls after Trump halts strikes against Iran
The benchmark yield fell on Monday after President Donald Trump said further military strikes against Iran had been postponed after "productive" negotiations.
TL;DR
- The 10-year Treasury note yield fell on Monday after President Trump announced the postponement of military strikes against Iran.
- Trump cited "productive" negotiations as the reason for the postponement, stating that conversations would continue.
- Iranian state media denied that any direct or indirect talks between the U.S. and Iran had occurred.
- The yield on the 2-year note and the 30-year bond also dropped.
- Traders had previously feared the Federal Reserve might not lower interest rates and could potentially increase them.
- The article notes that for equities to stabilize, bond yields also need to stabilize.
- Upcoming economic data includes the S&P Global Flash U.S. PMI report and the University of Michigan consumer sentiment index.
- Hostilities in the Middle East had previously caused concerns among traders, with Trump threatening to "obliterate" Iranian power plants and Iran retaliating with threats against energy infrastructure and U.S. bondholders.