Treasury yields drop as oil sinks on Middle East peace hopes
TLT•TLT•TLT•TLT•The 10-year Treasury yield fell 4.9 basis points to 4.88% and the 30-year yield dropped 5.7 basis points to 5.252% as oil prices fell more than 6%. October manufacturing PMI rose to 55.5 from 54.5 in September.
Longer-dated US Treasury yields declined Monday as oil prices fell more than 6% after Iran’s president said the country’s Supreme Leader had granted the government “certain authorities” regarding peace talks. The 10-year yield fell 4.9 basis points to 4.88%, while the 30-year yield dropped 5.7 basis points to 5.252%; the 2-year yield edged down 0.4 basis points to 4.579%.
The Institute for Supply Management said its manufacturing PMI rose to 55.5 in October from 54.5 in September, above economists’ estimates that it would remain at 54.5. JoAnne Bianco of BondBloxx Investment Management said lower oil prices could ease inflation pressure, while investors were also attributing declines in long-dated yields to a flight to safety amid weakness in equities and questions about the sustainability of AI investment.
