US Yields Fluctuate Amid Iran Concerns and Global Bond Selloff
US Treasury yields fluctuated on Tuesday amid concerns over Iran and a broader global bond selloff. The yield on the benchmark 10-year US Treasury note was last down 1.6 basis points to 4.708%, while the 30-year bond fell 2.6 basis points to 5.284%. Analysts attributed the change in sentiment to a lack of economic data or catalysts, leaving markets to focus on developments in the US-Iran conflict.
US President Donald Trump stated that no talks were taking place with Iran and none were scheduled, while insisting that the Strait of Hormuz was open. This contradicted an Iranian assertion that the waterway remained closed to shipping.
The Federal Reserve reported that July growth in US industrial production had cooled by a tenth of a percentage point to 0.2%, undershooting economists' expectations due to a decline in production of consumer goods.