The U.S. 10-year Treasury yield fell nearly 2 basis points to 4.93% on Tuesday, reversing a modest early-session increase as oil prices declined for a fifth consecutive session. Renewed hopes for a diplomatic solution to the conflict with Iran reduced oil prices and eased concerns about inflationary pressures. Treasury yields have generally declined since the Federal Reserve raised interest rates last week for the first time since 2023. Chair Warsh reaffirmed the central bank’s commitment to price stability, helping restore its credibility. The decline in borrowing costs came despite a more hawkish tone from the Fed, with Chicago Fed President Austan Goolsbee warning that persistent supply shocks cannot be overlooked and St. Louis Fed President Alberto Musalem saying further rate increases may be needed to bring inflation toward target. Markets currently expect at least one additional rate hike this year.