Treasury yields fell early as Bessent told CNBC a deal to reopen the Strait of Hormuz could arrive “today or tomorrow,” pushing WTI to $78 a barrel. The 10-year yield slipped to 4.665% and the two-year to 4.219%. The June trade deficit widened to $73.3 billion, while JOLTS job openings are forecast to dip to 7.4 million. The dollar index held steady with the greenback up 0.2% versus the yen.

In European hours, yields reversed higher after Iran said no talks were planned and reports emerged of a vessel struck in the Hormuz strait. The 10-year yield climbed to 4.705% and the DXY rose to 100.013. Bank Pro’s Paolo Broccardo noted the messaging discrepancy could sustain safe-haven bids and inflation concerns.

Eurozone bonds were little changed, with the 10-year Bund at 3.148%. U.K. gilt yields rose 2 basis points to 4.972% on the Hormuz incident. BlackRock highlighted persistent curve steepening driven by AI investment, energy constraints, and geopolitical fragmentation. RBC strategists said slowing short-dated gilt supply could support the March 2032 gilt, currently yielding 4.601%.