Mumbai, May 27 -- Treasury yields fell on Tuesday as bond markets returned from a Memorial Day break to bolstered hopes of a Middle East peace deal, even as the U.S. military conducted fresh strikes on Iran.

The yield on the 10-year U.S. Treasury note - the key benchmark for U.S. government borrowing - moved lower by more than 8 bps to 4.48%.

The 2-year Treasury note yield which more closely tracks short-term Federal Reserve interest rate policy, dropped more than 8 bps to 4.04%. The longer-dated 30-year Treasury bond yield also declined more than 5 bps to 5.02%.

Published by HT Digital Content Services with permission from Capital Market....