Treasury yields slide as Iran deal drives rethink on Fed …

U.S. Treasury yields fell due to a preliminary peace agreement between the U.S. and Iran, influencing investor expectations regarding inflation and interest rates. The yield on the 10-year Treasury note decreased to 4.459%, while the 2-year Treasury yield dropped to 4.054% and the 30-year Treasury bond yield fell to 4.958%. President Trump announced the deal's completion and the reopening of the Strait of Hormuz, leading to a decrease in oil prices. Investors are awaiting economic data on housing and retail sales and a Federal Reserve policy meeting, which is likely to maintain current interest rates. Attention is particularly focused on Fed Chair Kevin Warsh's first press conference.

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Treasury yields slide as Iran deal drives rethink on Fed interest rate hikes

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The new Chairman of the Kevin Warsh departs from the East Room of the White House after a swearing in ceremony in Washington, DC on May 22, 2026. The US Senate confirmed Kevin Warsh as the new Federal Reserve Chairman on May 13 to lead a central bank whose independence is under attack and with inflation at a three-year high. (Photo by Aaron Schwartz / AFP via Getty Images)

Federal Reserve Chairman Kevin Warsh departs from the East Room of the White House after a swearing-in ceremony, May 22, 2026.

Aaron Schwartz | AFP | Getty Images

U.S. Treasury yields fell on Monday as the announcement of a preliminary peace agreement between Washington and Tehran shifted investor expectations for inflation and the outlook for interest rates.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 2 basis points to 4.459%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was more than 3 basis points lower at 4.054%. The longer-dated 30-year Treasury bond yield lost more than 1 basis point to 4.958%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Symbol	Company	Yield	Change
US10Y	U.S. 10 Year Treasury	4.443%	-0.042
US1M	U.S. 1 Month Treasury	3.665%	+0.002
US1Y	U.S. 1 Year Treasury	3.834%	-0.019
US2Y	U.S. 2 Year Treasury	4.031%	-0.054
US30Y	U.S. 30 Year Treasury	4.946%	-0.027
US3M	U.S. 3 Month Treasury	3.702%	-0.006
US6M	U.S. 6 Month Treasury	3.795%	-0.003

President Donald Trump said late Sunday on social media that a deal with Iran was “now complete.” Pakistan Prime Minister Shehbaz Sharif said an official signing ceremony would take place on Friday in Switzerland.

Trump also said he authorized the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling on Sunday. U.S. crude fell 5% in response.

The announcement came after an exchange of fire between Israel and Tehran-backed Hezbollah in Lebanon piled further pressure on the fragile ceasefire between the U.S. and Iran.

Investors are watching for economic data on housing and retail sales this week. They will also closely monitor the Federal Reserve policy meeting, which Fed funds futures indicate has a more than 98% chance of ending with rates unchanged, according to CME’s FedWatch tool.

“Given the recent uptick in inflation, we think Wednesday’s Federal Reserve meeting itself in terms of any monetary policy changes will be a snoozer,” said Michael Landsberg, chief investment officer at Landsberg Bennett private wealth management. “We will be paying particular attention to Warsh’s first press conference as we try to understand what type of communicator he will be and what level of detail he will go into during the press conference.”

— CNBC’s Alex Harring also contributed to this report.

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