US Treasury yields fall as Hormuz progress eases inflation fears, 10s -4bp

desk brief, Tue 25 Aug 2026

Treasuries (close 2026-08-24): 2s 4.24% (+0.0bp), 10s 4.7% (-4.0bp), 30s 5.23% (-4.0bp).

Tape (close 2026-08-24): VIX 15.85, 2s10s +46bp.

Narrative: Canadian Dollar remains depressed as firmer USD and trade war counter higher oil prices

What mattered:

• US Treasury yields fall as Hormuz progress eases inflation fears
• ECB policymakers ready to raise rates in sept to stem side effects of the Iran war - Sources
• United States 2-Year Note Auction dipped from previous 4.315% to 4.204%
• US rates need to rise soon absent evidence of ongoing drop in inflation, Fed's Collins says
• Fed's Collins: It is appropriate to raise interest rates soon, absent evidence of sustained disinflation.