US bond yields fall as the public awaits the Fed's decision and oil tensions escalate.

US Treasury yields declined at the start of the week, as investors monitored oil price developments amid the ongoing trade war between the United States and Iran, and awaited the Federal Reserve's monetary policy decision during its meeting this week.

The yield on 10-year US Treasury bonds – the main benchmark in the markets – fell by more than five basis points to around 4.234%.

The yield on 30-year bonds also fell by more than three basis points to around 4.875%.

Meanwhile, the yield on two-year bonds fell by more than five basis points to 3.675%. It's worth noting that a basis point is equal to 0.01%, and yields typically move inversely to bond prices.

Meanwhile, investors continue to monitor oil price movements, which remain high as the conflict between the United States and Iran enters its third week.

West Texas Intermediate crude futures fell by about 2% to trade near $96 a barrel, while Brent crude prices settled near $103 a barrel.

The continued rise in energy prices is raising market concerns about renewed inflationary pressures in the coming period.

In this context, US President Donald Trump called on other countries to participate in securing the Strait of Hormuz, stressing that this vital sea lane serves the interests of many countries more than it serves the United States.

Despite this call, no country has yet announced official plans to send warships to the region.

On the economic front, investors are focused on the upcoming Federal Reserve meeting on Wednesday, the central bank's second meeting this year.

Market forecasts currently indicate a near 100 percent probability of interest rates remaining unchanged, according to estimates from market forecasting tools.

For their part, Deutsche Bank analysts noted in a research note that the bank's economists expect the central bank meeting to focus on the high level of geopolitical uncertainty.

They also expect Federal Reserve Chairman Jerome Powell to emphasize during the press conference that recent developments are primarily reflected in financial conditions, particularly through their impact on oil prices.

Analysts added that Powell may currently avoid signaling any major change in the direction of monetary policy in the near term, given the continued uncertainty related to geopolitical developments and their potential impact on the global economy.