On Wednesday, U.S. Treasury yields fell, with the 10-year note yield decreasing by 1 basis point to 4.483%, while the 2-year yield remained stable at 4.199%. The 30-year bond yield also saw a slight decline, dropping over 1 basis point to 4.924%.
This movement in yields coincided with a significant drop in Brent crude prices, which fell 1.7% to $75.79 per barrel, marking the lowest price since February 27, just before the onset of the U.S. and Israeli-led war against Iran.
The decline in oil prices was attributed to reduced concerns over supply disruptions, particularly as maritime traffic through the Strait of Hormuz is expected to normalize. The International Maritime Organization confirmed that over 11,000 seafarers stranded in the Persian Gulf would begin to exit through the Strait after safety guarantees were established.
Looking ahead, investors are focused on the upcoming release of the personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, which is anticipated to show an increase in core PCE, excluding food and energy prices, from April. This data could have significant implications for future interest rate decisions by the Fed