Geopolitical risk premium has declined along with falling oil prices, leading to a significant retreat in U.S. Treasury yields.

On Monday local time (August 3), the U.S. bond market experienced a broad retreat, with yields on government bonds of all maturities falling collectively. The yield on the 2-year Treasury note decreased by 5.38 basis points to 4.233%, the 3-year yield fell by 6 basis points to 4.29%, the 5-year yield dropped by 6.18 basis points to 4.385%, the 10-year yield declined by 5.92 basis points to 4.674%, and the yield on the 30-year long bond fell by 4.61 basis points to 5.225%. Prior to this, the yield on the 30-year Treasury note had briefly surged to its highest level since 2007 the previous week, as investors reacted to the hawkish stance of Federal Reserve officials who chose a wait-and-see approach.