Treasuries-Yields fall as oil slides, buyback debate simmers

Longer-dated Treasury yields fell on Tuesday as oil prices dropped to a one-week low and traders continued to weigh the implications of Treasury Secretary Scott Bessent's decision to expand Treasury buybacks.

Oil prices fell more than 3% as traders shrugged off the latest U.S. sanctions campaign against Iran, viewing economic pressure as posing less risk to oil supplies than a military escalation would.

“There continues to be this very heated rhetoric and escalation, but oil is still trading in a narrow range considering all that has happened in the last couple of months,” said Will Compernolle, macro strategist at FHN Financial. “It might just be that investors in energy markets have become desensitized to how the conflict is fluctuating.”

Iran pledged to fight back against the expanded U.S. sanctions aimed at isolating its economy, expressing confidence that its major trading partners would resist the pressure campaign, while adding that Washington remained eager to revive talks.