U.S. Treasury yields were little changed on Monday, as investors continued to digest ongoing tensions between Israel and Iran.
Both the 2- and 10-year yields slipped nearly 1 basis point to 3.945% and 4.411%, respectively. Bond yields move inversely to prices.
Markets were rattled late last week when Israel struck Iranian military and nuclear sites. That triggered a flight to safe-haven assets, sending oil, gold, and the U.S. dollar higher, while equities fell. The conflict had stoked renewed fears of inflation due to higher energy prices, adding to uncertainty tied to the impacts of the U.S. tariff policy.
The standoff deepened over the weekend as Israel and Iran widened their attacks, targeting each other's energy facilities as well.
However, the WSJ's report that Iran signals it wants to end hostilities and resume talks over the nuclear program brought some relief to the markets. Against this backdrop, the WTI and Brent crude plunged by more than 3% to $70.57 and $71.84 per barrel, respectively.
Markets are also preparing for the announcement of the Federal Reserve's policy decisions on Wednesday. Expectations are for the U.S. central bank to keep interest rates unchanged at its upcoming meeting and reiterate its wait-and-see stance.