U.S. Treasury yields fall as investors weigh Iran deal to reopen Strait of Hormuz

U.S. Treasury yields fell Wednesday as investors weighed a possible deal to reopen the Strait of Hormuz, a development that could shape inflation and Federal Reserve policy. The 10-year yield slipped to 4.6086%, the 30-year fell to 5.1617%, while the 2-year edged up to 4.2061%. Treasury Secretary Scott Bessent said Tuesday a deal allowing commercial ships through the strait could be reached this week. U.S. Central Command declared the strait’s southern route open, and oil prices rose modestly Wednesday. Markets now await the ISM services PMI and Friday’s non-farm payrolls report for inflation and rate clues.