US Treasury yields moved lower on Monday, following a broader decline in government borrowing costs globally as oil prices fell.
The yield on the benchmark 10-year Treasury note dropped by more than three basis points to 4.957%. It had climbed to 5.041% last week, its highest level in 19 years.
The two-year Treasury yield also declined by more than two basis points to 4.718%, while the 30-year Treasury bond yield fell by over three basis points to 5.293%.
A basis point is equivalent to 0.01 percentage point. Bond yields and prices generally move in opposite directions.
The decline in US yields mirrored movements in European debt markets, where government bond yields also eased. Germany’s 10-year bund yield and the UK’s 10-year gilt yield each fell by five basis points.
Japanese markets were closed on Monday, leaving the country’s bond market unavailable for trading.
Markets received some support from lower crude oil prices, which helped lift stock prices despite ongoing conflict in the Middle East.
Investors are also watching diplomatic efforts as world leaders gather for the United Nations General Assembly this week. The US is increasing pressure on Tehran to reach an agreement that could help restore trade flows through the Strait of Hormuz.
Attention remains focused on monetary policy after the Federal Reserve raised interest rates by a quarter of a percentage point last week.
Investors are assessing whether the US central bank could increase rates again before the end of the year, with upcoming economic data and comments from policymakers expected to influence expectations.
The European Central Bank also raised interest rates in the euro area this month, while the Bank of England left its benchmark rate unchanged at its meeting last week.
Several key economic indicators are due this week. S&P Global Purchasing Managers’ Index data are scheduled for release on Wednesday, followed by US Initial Jobless Claims figures on Thursday.
Investors are also expected to closely monitor remarks from New York Federal Reserve President John Williams, Federal Reserve Bank of Richmond President Tom Barkin and other central bank officials for further indications about the direction of interest rates.
