Trump Says Iran Negotiations Are "Fruitful", US 10-Year Treasury Yield Falls Back

Investing.com - U.S. President Trump delayed a military strike on Iran’s energy infrastructure after “productive” negotiations with Tehran, with benchmark U.S. Treasury yields slightly lower on Monday.

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As of 10:22 a.m. Eastern Time (14:22 GMT), the 10-year U.S. Treasury yield fell 0.079 basis points to 4.331%.

Trump posted on social media that the U.S. and Iran had “productive” talks over the past two days aimed at achieving a “comprehensive and complete resolution” to hostilities.

Trump said that based on the “tone and attitude” of these discussions, negotiations would continue this week, and he has instructed the Pentagon to “delay” any and all military strikes against Iran’s power plants and energy infrastructure by five days.

Following Trump’s comments, U.S. stocks rose, and the global benchmark Brent crude oil futures fell below $100 per barrel. In recent days, Brent contracts had hovered above that level.

However, according to the New York Times, citing Iran’s state news agency Mizan, Iran’s Foreign Ministry stated that the country has not been in negotiations with the U.S. to cease fire, and called Trump’s statement a strategy to “lower energy prices and buy time to implement his military plans.”

Earlier, Trump threatened that if Tehran did not reopen the Strait of Hormuz by Monday evening, it would face new strikes on Iran’s energy infrastructure and power plants. The Strait of Hormuz, a narrow waterway in southern Iran, is a critical chokepoint through which one-fifth of global shipping passes, and has become a flashpoint in the conflict.

Iran’s potential threats to attack ships attempting to pass through the strait have effectively halted traffic, cutting off key energy imports to countries worldwide and casting a shadow over the global economic outlook. There are widespread concerns that a sharp rise in oil prices could trigger inflation shocks, slow economic growth, and prompt central banks to raise interest rates again.

Earlier, the 10-year Treasury yield (which often moves inversely to prices) broke above 4.40% for the first time this year, as investors assessed Trump’s ultimatum to Iran. Reuters cited analysts who said that if the 10-year yield rises to 4.5%, stocks could come under pressure.

This level is roughly comparable to the level seen when Trump decided in 2025 to withdraw punitive “reciprocal” tariffs on multiple countries. Trump at that time noted that the bond market’s “somewhat tense” mood was a reason for his retreat.

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