Treasuries declined as markets reopened following a US public holiday, with Washington and Tehran working towards a peace agreement. US 10-year yields increased by three basis points, having previously climbed by as much as five basis points. This movement occurred as traders returned from Friday's cash-market holiday, during which European counterparts experienced a significant surge.
This drop in Treasuries bucked a broader market rally. The decline in yields was notable as oil prices decreased after Iran announced "major progress" in all-night discussions with the US. Initially, there were concerns about inflation fueled by earlier warnings from former President Trump regarding Iran, which contributed to the earlier rise in yields.
The overall market sentiment was influenced by the ongoing diplomatic efforts between the US and Iran and their impact on global commodity prices.
