FXStreet (Mumbai) - The yields on the short duration and long duration treasuries in the US fell sharply as oil prices fell to their lowest since 2003, while European equities surrendered early gains. The 10-yr yield currently trades 6bps lower at 2.037%. The policy sensitive 2-yr treasury yield trades more than 4bps at 0.85%. Oil prices took a dive after Western nations lifted sanctions placed over Iran. This has opened doors for more Iranian oil supplies in the near future; something that shall worsen the supply glut situation. The drop in oil prices weighs over inflation expectations and thus pulls treasury yields lower. Meanwhile, European stocks erased early gains which also added to the bearish pressure on yields. For more information, read our latest forex news.