Updated
Updated · CNBC · Aug 4
10-Year Treasury Yield Falls to 4.667% as Oil Drops 3% on Hormuz Deal Hopes
Updated
Updated · CNBC · Aug 4

10-Year Treasury Yield Falls to 4.667% as Oil Drops 3% on Hormuz Deal Hopes

3 articles · Updated · CNBC · Aug 4

Summary

  • The 10-year Treasury yield fell nearly 2 basis points to 4.667% on Tuesday, while the 2-year slipped to 4.229% and the 30-year eased to 5.222%.
  • Oil prices drove the move lower after Treasury Secretary Scott Bessent said talks with Iran could produce a deal as soon as Tuesday or Wednesday to reopen the Strait of Hormuz.
  • WTI crude dropped 3% to about $77 a barrel and Brent fell 2% to around $81, easing some inflation pressure that had recently pushed long-dated Treasury yields sharply higher.
  • That pullback follows a run-up that sent the 30-year yield to its highest level since 2007, even as investors are still digesting the Federal Reserve's hawkish hold last week.

Insights

Could the market's sudden optimism over falling oil prices be a trap if the Federal Reserve maintains its hawkish grip on interest rates?
Even if a treaty is signed tomorrow, how many months will it actually take to repair crippled infrastructure and restore global oil flows?
With the Strait of Hormuz deal hanging by a thread, what hidden concessions were made to suddenly bring Iran to the negotiating table?