US Treasury yields fall as Hormuz progress eases inflation fears
US yields edge lower across the whole curve on Tuesday, following suit.
US Treasury yields slipped on Tuesday as progress in Hormuz eased inflation worries. Lower oil prices contributed to the decline, following sanctions imposed by the US Treasury on 60 entities linked to Iran. Meanwhile, Iran denied claims that the Pakistan Army Chief offered to halt the blockade in the Strait of Hormuz in exchange for opening it.
The White House confirmed the removal of mines in the Strait, a move that bolstered market sentiment. Economic indicators showed a solid jobs market and improved building permits in July, while US households grew less confident. The Federal Reserve's preferred inflation gauge, the Core PCE Price Index, is set to be released on Wednesday.
Traders will also be watching jobs and growth data, as well as the Fed Chair's speech. The 2-year T-note yield dropped nearly five basis points to 4.193%, while the 10-year benchmark note fell six basis points to 4.635%.
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