27.07.202601:35:50UTC+00US 10-Year Yield Falls as Oil Prices Drop

The yield on the US 10-year Treasury note slipped to around 4.64% on Monday, retreating from six-month highs as oil prices declined after a pause in hostilities between the US and Iran over the weekend. The easing of geopolitical tensions tempered concerns about potential supply disruptions and renewed inflationary pressures. The US halted its nearly two-week campaign of strikes against Iran starting late Friday without an official announcement, while Tehran declared an end to its retaliatory military actions and reported talks with Oman regarding the Strait of Hormuz.

At the same time, investors are focused on this week’s Federal Reserve policy meeting, where officials are widely expected to keep interest rates unchanged. Still, some market participants see a possibility that the Fed could move as early as this meeting in response to the latest inflation dynamics. Markets are also awaiting advance Q2 GDP data, PCE inflation figures, and earnings reports from major US companies for additional signals on the underlying strength of the US economy.