US Treasury yields retreated on Monday, with the benchmark 10-year note slipping below the 4.5% threshold as markets absorbed the news of a ceasefire between the United States and Iran.
The halt in hostilities, announced over the weekend, triggered a swift unwind of geopolitical risk premiums that had been supporting bond prices and suppressing yields in recent sessions.
The decline in yields reflects a broader rotation out of safe-haven assets as the immediate threat of escalation in the Middle East receded.
Energy markets moved in tandem, with oil prices falling as the prospect of supply disruptions diminished.
The synchronized move across fixed income and commodities underscores how deeply the conflict had been embedded in current pricing models.
This development marks a significant shift from earlier in the week, when investors had maintained confidence in a potential peace deal even as tensions between Washington and Tehran remained high.