US Treasury Yields Plummet with Oil Prices Down

Treasury yields followed oil lower on July 27, 2026, as the US paused strikes on Iran and crude prices declined. The move in US government debt sent yields down by around one to four basis points, with those on the 10-year note falling to 4.64%, off its year-to-date peak reached last week.

The recent surge in Treasury yields supported demand at a $69 billion auction of two-year notes, despite traders seeing a roughly one-in-three chance of a Federal Reserve hike this week. The sale of five-year notes drew less interest, however.

The advance in US Treasuries was driven by the decrease in oil prices and the pause in strikes on Iran, which boosted investor confidence. This comes ahead of the key Federal Reserve meeting later this week, where market participants will be watching closely for any changes to monetary policy.