Shafaqna English– Over the last three months, yields on benchmark Treasury bonds have increased due to investor concerns over the economic impact of the war with Iran. This has created a difficulty for President Donald Trump, who wants to maintain low interest rates.
However, the way yields have behaved in recent days after fragile peace negotiations suggests that Trump may soon have a chance to bring them back down to a more controllable level.
The yield on the 10-year U.S. Treasury is a widely watched benchmark, as it determines interest rates throughout the economy—from mortgage rates to what companies pay to borrow.
It has been trending upward in recent years due to investor worries about the long-term sustainability of rising U.S. government debt. In recent months, yields rose further following an oil shock caused by the Iran war, which sparked inflation concerns. But since May 20, when Trump raised the prospect of a truce deal, Treasury yields have edged lower.
Source: Reuters