US Treasury Yield Eases Amid Lower Energy Prices and Iran-US Deal

The US Treasury yield eased to 4.65% on Tuesday, down from an 18-month high of 4.75% in the previous session.

This decrease was largely due to lower energy prices, which reduced the risk of higher inflation and a hawkish reaction from the Federal Reserve.

Qatari authorities announced that the US and Iran were close to signing a short-term agreement that would pause the conflict, with US Treasury Secretary Yellen noting that a deal could be announced imminently.

The developments led to further declines in fuel and natural gas prices, limiting the risk of energy-driven inflation continuing to lift underlying consumer prices.