Demand for U.S. Treasurys surged on Tuesday, nudging yields lower as investors awaited details of the announced U.S.-Iran agreement and the Federal Reserve’s first two‑day meeting under Chairman Kevin Warsh. The 10‑year slipped to 4.44% from 4.47% the day before, while the two‑year fell to about 4.05%. The dollar index stayed flat near 99.6, limiting currency‑related pressure on yields.

Oil prices dropped nearly 5%, easing inflation worries that had lifted real yields after the Gulf conflict. Import prices rose 1.9% in May, outpacing consensus, while housing starts plunged 15.4%, well beyond the 2.4% decline forecast. Eurozone bonds moved in step, with German 10‑year Bund yields steady at 2.96%, underscoring that global rates react more to geopolitics than domestic data.

Analysts note that the yield retreat reflects a “muted” market reaction to the interim deal; real yields remain about 40 basis points above pre‑war levels, suggesting limited upside for bonds. With the Fed expected to hold rates steady and no clear answer on balance‑sheet policy, the 10-year Treasury yield is likely to hover near its current 4.44% band for the near term.