Construction continues at the Marriner S. Eccles Federal Reserve Building in Washington, DC, December 30, 2025.
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Treasury yields rose Tuesday as investors await clarity on the second round of peace talks expected to take place between the United States and Iran.
The yield on the US Treasury at 10 years The rating — the key benchmark for U.S. government borrowing — rose more than 4 basis points to 4.298%.
THE 2-year Treasury bill the yield, which more closely tracks the Federal Reserve’s short-term interest rate policy, was more than 6 basis points higher at 3.781%. The most dated 30-year Treasury bond the yield climbed more than 2 basis points to 4.906%.
One basis point is 0.01%, and yields and prices move in opposite directions.
The two administrations received a series of conflicting messages on Monday, as Iran backed away from engaging in new negotiations in the face of threats of overwhelming military force from the president. Donald Trump.
Iranian state media reported shortly before 4 a.m. on Tuesday that no delegation had yet left for planned peace talks in Islamabad.
“Trump, by imposing a siege and violating the ceasefire, seeks to transform this negotiating table – in his own imagination – into a table of capitulation or to justify new warmongering,” said the speaker of the Iranian parliament, Mohammad Bagher Ghalibaf, in an X message. job.
“We do not accept negotiations under the shadow of threats, and over the past two weeks we have prepared to reveal new cards on the battlefield,” added Ghalibaf, who is also Iran’s chief negotiator.
This followed Trump’s statement that “a lot of bombs [will] start leaving” if no agreement is reached before the fragile ceasefire expired.
Investors also face uncertainty over when exactly the ceasefire will expire.
The two-week deal between the United States and Iran expires on Wednesday. Asset told Bloomberg On Monday, the truce would end “Wednesday evening, Washington time.”
Elsewhere, traders monitored the Federal Reserve chair candidate Kevin WarshIt is confirmation hearing Tuesday. During the hearing, Warsh said Trump never asked him to “predetermine, commit to, set, decide on an interest rate decision in any of our discussions” and that he would never agree to make such a decision simply because the president asked him to.
In his prepared statement Monday to the Senate Banking Committee, the former Fed governor said the U.S. central bank must be largely independent of political influence, while remaining focused on its core objectives.
“The Fed needs to stay in its lane,” he said. “The Fed’s independence is put at risk when it ventures into fiscal and social policies where it has neither authority nor expertise.”
Trump told CNBC on Tuesday that he would be disappointed if Warsh didn’t cut rates immediately. if he is appointed head of the central bank.
— CNBC’s Lisa Kailai Han and Justina Lee also contributed to this report.
