The decline in oil prices and dovish comments from Federal Reserve officials boost bets on interest rate cuts, causing short-term US bond yields to fall.

Due to the fall in oil prices and dovish comments from Federal Reserve officials boosting bets on rate cuts, US Treasury bond prices rose, with the yield on the two-year Treasury bond, sensitive to monetary policy, falling by 3 basis points to 3.83%. However, long-term US Treasury bonds performed poorly, with the 30-year Treasury bond yield rising by 2 basis points to 4.89%. The currency market has fully absorbed expectations of two rate cuts by the Federal Reserve by the end of the year, with a 25% chance of a third rate cut, higher than the 13% from a day ago; expectations for a rate cut in July have risen from zero a week ago to 20%. On Tuesday, a ceasefire agreement between Israel and Iran after more than a week of conflict pushed oil prices lower, easing concerns about inflation. Market focus has shifted to Federal Reserve Chairman Powell's semiannual monetary policy report testimony to the House Financial Services Committee on Tuesday evening. Prior to Powell's testimony, several Federal Reserve officials have recently made dovish comments. Fed governor Bowman indicated she may support a rate cut in July, echoing Fed governor Bullard's comments from last Friday. Subsequently, Chicago Fed President Evans stated that inflation pressure is not obvious, which may prompt the Fed to resume rate cuts. Mohit Kumar, Chief European Strategist at investment bank Jefferies, stated in a client report, "We do not agree with the view that the Fed will cut rates in July, but we do believe that data should show signs of weakness in the summer, prompting the Fed to cut rates in September." A number of Federal Reserve officials will speak intensively on Tuesday. In addition to Powell, six officials including New York Fed President Williams, Boston Fed President Collins, and Fed Governor Brainard will give speeches.