Treasuries-Yields fall as oil retreats on Iran deal optimism
TLT•Treasury yields and rate expectations
The 2-year note US2YT=RR yield, which typically moves in step with Fed interest rate expectations, fell 6.22 basis points to 4.194% and reached 4.1897%, the lowest level since July 20.
The yield on benchmark U.S. 10-year notes US10YT=RR fell 5.72 basis points to 4.627%.
The yield curve between 2- and 10-year Treasury yields US2US10=TWEB flattened to 43 basis points.
The recent spike in oil prices amid the escalating war in the Middle East had fueled speculation that the Fed might need to raise rates to keep inflation in check, as price growth remains stubbornly above the central bank's 2% target.
Traders are also still parsing comments last week from Fed Chairman Kevin Warsh, who noted inflation risks but stopped short of laying out a concrete plan to address them.
