The yield on the key 10-year Treasury note — the main benchmark for mortgages, auto loans and credit card debt — was more than 4 basis points lower at 4.634%.
Shorter- and longer-term yields also moved lower. The yield on the 2-year Treasury note, which typically tracks short-term Federal Reserve interest rate decisions, dropped 3 basis points to 4.299%
Meanwhile, the 30-year Treasury yield, which traditionally moves in response to geopolitical events, was down more than 4 basis points to 5.121%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Oil prices rapidly reversed course, with U.S. West Texas Intermediate futures sliding 8% to $82.18. Global benchmark Brent crude — which last week had approached the $100 per barrel level — was last seen 9.5% lower at $87.59.
The moves come as traders look ahead to the Federal Reserve’s latest interest rate decision, due Wednesday. Consensus forecasts indicate the rate-setting Federal Open Market Committee will leave rates unchanged at 3.75%.
As markets weigh how the evolving Middle East picture is likely to shape the Fed’s rate call, investors are also keeping an eye on a slew of other economic data releases scheduled this week.
These include June’s core PCE price index, the latest quarterly GDP print, and new orders data for U.S.-made durable goods.
About the Author
