Treasury Yields Fall From Session Highs

The yield on the 10-year US Treasury note eased to 4.41% on Monday, down from an intraday high of 4.46%, as concerns diminished over the potential for Israel's conflict with Iran to escalate into a broader regional war.

Sentiment was further supported by reports that Iran is signaling a willingness to resume nuclear negotiations, which contributed to a decline in oil prices.

The drop in energy costs helped alleviate inflationary pressures, reducing strain on the bond market.

Meanwhile, the Federal Reserve is expected to maintain the fed funds rate unchanged on Wednesday.

Policymakers had already stated that uncertainty in the US economic outlook due to the unclear future for trade and fiscal policy will prevent them from clear policy pivots.

Rate futures show that markets expect two rate cuts for the year, and the Summary of Economic Projections released with the Fed's rate decision will offer clues on how policymakers' view contrast with those of Wall Street.