U.S. Treasury yields fall as traders monitor possible Iran war deal

Yields on U.S. Treasurys continued to move lower Wednesday, as investors eye how a potential deal to unlock the Strait of Hormuz is likely to shape the U.S. economic picture and inflation path.The 10-year U.S. Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 1 basis point lower at 4.6086% in early dealmaking.The longer-dated 30-year Treasury bond yield, which is more sensitive to geopolitical risks, was down 2 basis points at 5.1617%. The 2-year Treasury note yield, which tends to react in line with short-term Federal Reserve interest rate decisions, was up 1 basis point at 4.2061%. One basis point is equal to 0.01%, and yields and prices move in opposite directions.Treasury Secretary Scott Bessent told CNBC Tuesday that a deal to allow commercial ships to pass through the Strait of Hormuz could be struck this week. That sent U.S. government bond yields sharply lower, with U.S. crude oil prices tumbling almost 6% during Tuesday's session. Later, U.S. Central Command in a post on X declared the Strait of Hormuz's southern route "free and open."Oil prices edged higher in early trade Wednesday, with West Texas Intermediate futures...