US 10Y Bond Yield Hits 4-week Low

The yield on the 10-year US Treasury note declined to around 4.43% on Monday, reaching its lowest level in a month after the US and Iran reached a peace agreement that would reopen the Strait of Hormuz. The development sent oil prices to a two-month low, easing concerns over inflationary pressures and reducing expectations of tighter monetary policy. The agreement is due to be signed in Switzerland on June 19 and reportedly includes the removal of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program. Investors are now focused on the US Federal Reserve’s first policy meeting under new chair Kevin Warsh, where policymakers are widely expected to leave interest rates unchanged. Elsewhere, the Reserve Bank of Australia and the Bank of England are also expected to keep policy settings intact this week, while the Bank of Japan is anticipated to raise rates to support the yen.

US 10 Year Government Bond Yield decreased to 4.42%, the lowest since May 2026. Over the past 4 weeks, US 10 Year Note Bond Yield lost 16.60 basis points, and in the last 12 months, it decreased 2.90 basis points.

The yield on the 10-year US Treasury note rose to 4.5% on Friday, trimming the 10bps decline from the previous session on fresh uncertainty over the Iran deal signaled by President Trump. The US President condemned reports that Iran struck an Indian ship and denied other reports that Iran had issued different concessions than those agreed, jeopardizing the deal that would restore energy flows from the Middle East. Oil and fuel prices trimmed their sharp decline to limit inflationary relief. Bets that the Federal Reserve will raise interest rates this year were consolidated earlier after both consumer and producer inflation rose to multi-year highs in May. In the meantime, the University of Michigan consumer confidence survey showed that inflation expectations eased from their peaks in the first half of June following the top in energy prices.