The yield on the two-year US government note fell by six basis points to 4.06%, while the yield on the ten-year note also dropped by six basis points to 4.50%. Rates for thirty-year bonds decreased to 5.03%, marking a decline of four basis points.
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Brent crude prices dipped below $100 per barrel after President Donald Trump mentioned on Monday that talks with Iran aimed at securing a temporary agreement to extend their ceasefire and reopen the Strait of Hormuz were “progressing well.”
However, according to a Bloomberg report, shortly after this statement, several Iranian vessels were reportedly targeted by US and Israeli aircraft in the Strait of Hormuz, highlighting the fragile status of the current ceasefire.
At the end of last week, overnight-indexed swaps had completely accounted for a Federal Reserve interest rate increase by March 2027, compared to December.
As some of the more aggressive Fed predictions lessened, the additional yield that investors require for holding thirty-year bonds over five-year notes rose to its highest level since May 2025.
(Edited by : Juviraj Anchil)
