Treasury Yields Fall on De-Escalation Hopes Amid Iran Conflict

U.S. Treasury yields declined on Monday as investors reacted to signs of de-escalation in the Iran conflict.

The yield on the 10-year U.S. Treasury note fell over 1 basis point to 4.688%, while the 2-year Treasury note yield dropped 4 basis points to 4.252%.

This move came as oil prices slumped after President Donald Trump claimed that negotiations with Iran would begin again, following the U.S.'s decision not to launch fresh strikes against the Islamic Republic at the request of Gulf allies.

Iranian Foreign Ministry spokesperson Esmail Baghaei poured cold water on the notion of direct negotiations with the U.S., stating there is no immediate plan for talks and that Tehran is only engaged in discussions with Oman regarding the Strait of Hormuz.