US 10-year Treasury yield falls 10 basis points to 4.40% after WTI crude drops 4% to $70.00 per barrel.
US Treasury yields declined across the curve after the Strait of Hormuz reopened, easing supply concerns and pushing West Texas Intermediate crude down 4% to $70.00 per barrel. The 10-year yield fell nearly 10 basis points to 4.40%, cooling inflation expectations.
The 5- and 10-year breakeven rates, gauges of inflation expectations, dropped to 2.24% and 2.21%, respectively, from mid-April peaks of 2.72% and 2.5%. Last week’s yield surge, driven by hawkish Fed signals, has partially reversed as markets price in lower inflation risks.
Traders now await the Fed’s July 29 meeting, where a 60% chance of unchanged rates is priced in, alongside key data including Q1 2026 GDP and Core PCE Price Index figures.