FXStreet (Mumbai) - The yields on the treasury notes in the US dropped from the one-week highs as the oil prices dropped and pushed stock markets lower in Europe and US. At the time of writing, the 10-yr yield traded at 2.03% compared to the one-week high of 2.089% seen on Friday. The more policy sensitive 2-yr yield currently trades at 0.865%; largely unchanged on the day. The yields received a boost on Friday due to the uptick in the oil prices and upbeat domestic economic data - manufacturing sentiment that rebounded in January after hitting a 38-month low in December and sales of existing homes soared 14.7% in December — the biggest monthly increase ever recorded. However, the oil prices dropped in Europe and triggered a moderate risk aversion. Drop in oil also weighs over inflation expectations and hence drags treasury yields lower. For more information, read our latest forex news.