US Treasury yields retreated in Tuesday trading as markets digested fresh diplomatic progress between Washington and Tehran.
The move reflects a rapid repricing of the geopolitical risk premium that has supported demand for safe-haven assets over recent weeks.
The catalyst was a report that direct negotiations in Switzerland have produced a roadmap toward a final peace deal.
Iranian President Masoud Pezeshkian is scheduled to visit Pakistan on Tuesday, a key mediator in the talks, following the agreement.
The development marks a significant shift from the heightened tensions that previously drove investors into government bonds.
In the fixed-income market, the easing of regional risk translated into selling pressure on Treasuries.