U.S. Treasury yields edged higher on Monday after a dramatic weekend that saw the Strait of Hormuz reopened and subsequently closed by Iran, with the two-week ceasefire set to expire on Tuesday.\u00a0<\/p>\n
The yield on the\u00a010-year U.S. Treasury<\/a>\u00a0note \u2014 the key benchmark for U.S. government borrowing \u2014 rose over two basis points to 4.267%.<\/p>\n The\u00a02-year Treasury note<\/a>\u00a0yield, which more closely tracks short-term Federal Reserve interest rate policy, was more than 3 basis points higher at 3.73%. The longer-dated\u00a030-year Treasury bond<\/a>\u00a0yield was seen trading broadly flat.<\/p>\n One basis point is equal to 0.01%, and yields and prices move in opposite directions.<\/p>\n On Friday, Iran declared the Strait of Hormuz fully open to commercial traffic, sending crude prices tumbling more than 10%<\/a>. By Saturday, hopes for a fully opened artery quickly unraveled as Tehran reclaimed control of the chokepoint, after Trump<\/a> refused to end the U.S. naval blockade of Iranian ports.<\/p>\n After a tumultuous weekend, U.S. President Donald Trump said American and Iranian negotiators would resume talks in Islamabad, Pakistan on Monday. But Iranian foreign ministry spokesperson Esmaeil Baqaei said there was “no plan for a second round of negotiations with the U.S. for now,” per Reuters.<\/p>\n “It appears last week’s market enthusiasm over the Strait of Hormuz reopening may have been premature,” said AJ Bell investment director Russ Mould. “Events over the weekend have left the ceasefire between Tehran and Washington looking as fragile as ever.”<\/p>\n Later this week, investors will be monitoring weekly crude oil inventories, as well as jobless claims data. <\/p>\n \u2014 CNBC’s Anniek Bao also contributed to this report.<\/p>\n