On Monday, Treasury yields fell as tensions in the Middle East subsided, with the yield on the 10-year Treasury note dropping to 4.6406%, a decrease of more than 3 basis points. Shorter- and longer-term yields also declined, with the 2-year Treasury yield at 4.3030% and the 30-year yield at 5.1260%.
This decline in yields reflects lower borrowing costs, which is significant for mortgages and loans. Concurrently, oil prices fell sharply, with U.S. West Texas Intermediate futures down 5.34% to $84.55 and Brent crude down 5.77% to $91.20. These movements come as traders anticipate the Federal Reserve's interest rate decision on Wednesday, where rates are expected to remain unchanged at 3.75%.
Investors are also monitoring various economic indicators this week, including the core PCE price index and GDP data, which could further influence market dynamics