Recent developments surrounding a potential peace deal between the US and Iran have significantly influenced Treasury yields. Following announcements regarding the deal, traders have adjusted their expectations for Federal Reserve interest rate hikes, leading to a notable rally in treasury bonds. The US 10-year yield has dropped to a one-month low, while overall market sentiment fluctuates due to concerns regarding inflation and oil prices. Despite some mixed signals, the prevailing mood suggests that yields may remain elevated as investors closely monitor upcoming economic data and Federal Open Market Committee meetings. This week’s events highlight the complex interplay between geopolitical developments and financial markets.