On Wednesday, U.S. Treasury yields continued their downward trend, with the 10-year note yield falling to 4.6086% and the 30-year bond yield dropping to 5.1617%. The decline in yields was largely driven by comments from Treasury Secretary Scott Bessent, who indicated that a deal to allow commercial shipping through the Strait of Hormuz could be reached soon.
This news led to a significant drop in U.S. crude oil prices, which fell nearly 6% on Tuesday. In early trading on Wednesday, oil prices showed some recovery, with West Texas Intermediate futures rising to $76.21 and Brent crude increasing to $80.20.
Investors are now closely monitoring upcoming economic data, including the Institute for Supply Management's services PMI, expected to rise to 54.5, and the critical non-farm payrolls data due on Friday. These indicators will help assess the impact of geopolitical developments on U.S. inflation and the Federal Reserve's interest rate decisions