Israel. Army post on the border with South Lebanon.
Mark Hannaford
Treasury yields fell on Tuesday as traders continue to monitor the latest developments between Iran and the U.S.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 4 basis points to 4.432%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, declined more than 3 basis points to 4.018%. The longer-dated 30-year Treasury bond yield slid 4 basis points to 4.951%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Borrowing costs rose on Monday after Iran’s Tasnim news agency reported that Iranian negotiators were halting talks with the U.S. following Israeli attacks in Lebanon, and Tehran could opt to completely close the Strait of Hormuz.
President Donald Trump appeared unconcerned over the prospect of peace negotiations with Iran falling through, telling CNBC later Monday, “I don’t care if they’re over, honestly.” But later Monday, Trump wrote in a post on Truth Social, “Talks are continuing, at a rapid pace, with the Islamic Republic of Iran.”
Investors are struggling to digest how the ongoing fighting between Israel and Hezbollah affects the chances of a broader ceasefire arrangement between Washington and Tehran.
Netanyahu, in an X post later Monday, said he told Trump that “if Hezbollah does not cease attacking our cities and citizens—Israel will attack terror targets in Beirut.”
“This stance of ours remains unchanged. In parallel, the IDF will continue to operate as planned in southern Lebanon,” Netanyahu wrote.
