The benchmark U.S. 10-year Treasury yield fell from an 18-month high on Monday as oil prices dropped after U.S. President Donald Trump said talks with Iran would restart, easing fears that the conflict could lock in higher inflation.Iran has choked off traffic in the Strait of Hormuz, a conduit for 20% of the world's oil and liquefied natural gas before the start of the war, causing energy prices to rise and stoking broader inflation.Renewed optimism about a deal pushed U.S. crude futures below $80 per barrel on Monday, supporting U.S. Treasuries and pushing yields lower.Bloomberg delays India’s entry to global bond index yet againThe inclusion of Indian government bonds in Bloomberg's Global Aggregate Index has been deferred yet again, as the company requires additional evaluation of both operational and market infrastructure components. This setback could lead to an immediate uptick in sovereign bond yields, surprising investors who were hopeful for increased foreign capital inflow. Meanwhile, Indian bonds remain part of various other emerging market debt indexes.The 10-year yield was last down 5.5 basis points (bps) at 4.69%, after hitting its highest since January 2025 on Friday of 4.747%.The two-year yield, which is sensitive to changes in Federal Reserve policy expectations, fell 4 bps to 4.25%.
US 10-year yield falls from 18-month high on Iran peace talk hopes
U.S. Treasury yields saw a decline on Monday as oil prices plummeted. President Donald Trump's recent announcement about renewed discussions with Iran helped ease inflation concerns, pushing U.S. crude prices down to below eighty dollars per barrel. Consequently, the benchmark ten-year Treasury yield fell from an eighteen-month peak, and the two-year yield also saw a substantial drop.








