Interest-rate-sensitive two-year US Treasury yields fell to a two-week low on Tuesday as oil prices tumbled more than 5% to a three-week low amid hopes of a deal to end the Iran war, according to a Reuters report. The decline prompted traders to scale back expectations of a Federal Reserve rate hike in September.
Qatar said mediators were making progress toward ending the US-Iran conflict. In contrast, Treasury Secretary Scott Bessent said an agreement to reopen the Strait of Hormuz could be reached as early as Tuesday or Wednesday.
