Bond Yields Slide. Fed's Bowman Says She Would Support Rate Cut as Soon as July.

Iran wasn't even the main focus for markets on Monday: Stocks gained steam and the yield on the 2-year Treasury note sank to 3.86% after Michelle Bowman, the Federal Reserve's vice chair for supervision, said she would support lowering interest rates as soon as July if the central bank sees inflation pressures remain contained.

"As we think about the path forward, it is time to consider adjusting the policy rate," she said in a speech.

"Before our next meeting in July, we will have received one additional month of employment and inflation data," Bowman said. "If upcoming data show inflation continuing to evolve favorably, with upward pressures remaining limited to goods prices, or if we see signs that softer spending is spilling over into weaker labor market conditions, such developments should be addressed in our policy discussions and reflected in our deliberations."