economy
Treasury yields slide as oil falls on Bessent comments
The move comes as oil prices slid more than 2% on the day after Bessent told CNBC an agreement to open the Strait of Hormuz could come Tuesday or Wednesday.
TL;DR
- Treasury yields moved lower on Tuesday.
- Oil prices slid significantly after Treasury Secretary Scott Bessent suggested a deal to open the Strait of Hormuz might occur soon.
- 10-year U.S. Treasury note yield fell over 6 basis points to 4.619%.
- 2-year Treasury note yield slipped over 5 basis points to 4.198%.
- 30-year Treasury bond yield shed over 4 basis points to 5.182%.
- U.S. West Texas Intermediate futures closed down 5.69% at $75.77 per barrel.
- International benchmark Brent crude moved down 5.26% to $79.36.
- Bessent stated talks with Iranians are ongoing and a deal could happen Tuesday or Wednesday.
- An analyst noted it may take time for oil markets to stabilize and for consumers to see relief.
- Energy-related inflation pressures might ease, but broader inflation could remain sticky.
- Yields had been rising due to elevated oil prices and concerns about persistent inflation, plus a 'hawkish hold' from the Federal Reserve.