Treasury yields slide as Iran deal drives rethink on Fed interest rate hikes

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U.S. Treasury yields fell on Monday as the announcement of a preliminary peace agreement between Washington and Tehran shifted investor expectations for inflation and the outlook for interest rates.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell over 4 basis points to 4.441%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was over 5 basis points lower at 4.035%. The longer-dated 30-year Treasury bond yield fell 3 basis points to 4.942%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.