Treasury yields fall as investors pin hopes on Israel-Hezbollah ceasefire

U.S. Treasury yields fell on Tuesday, following global yields lower, as President Trump's announcement of a ceasefire between Iran-backed Hezbollah and Israel bolsters investor sentiment. The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 4 basis points to 4.434%. The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, fell more than 3 basis points to 4.018%. The longer-dated 30-year Treasury bond yield fell more than 3 basis points to 4.956%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. Global bond yields broadly eased on Tuesday, with 10-year European sovereign yields falling by 5-7 basis points across the continent. Borrowing costs rose on Monday after Iran's Tasnim news agency reported that Iranian negotiators were halting talks with the U.S. following Israeli attacks in Lebanon, and Tehran could opt to completely close the Strait of Hormuz. The developments pushed oil prices higher on the first day of June. Prices of West Texas Intermediate futures jumped 5.93% to close at $92.54 per barrel, while Brent crude , the international oil price benchmark, closed up 4.24% at $97.79 per barrel. …