Treasuries Gain as Stock Selloff, Oil Drop Curb Rate-Hike Bets

Treasuries rose on Tuesday as a selloff in US stocks and further declines in oil prices curbed wagers on Federal Reserve interest-rate increases over the coming year. The move pushed yields lower across the curve, with the 10-year note yield falling several basis points.

The demand for Treasuries was supported by a well-received auction of 2-year notes, which saw strong participation from both domestic and international buyers. The decline in oil prices, which have fallen sharply this week, helped ease inflation concerns, reducing the perceived need for aggressive Fed tightening. Meanwhile, the stock market selloff, driven by worries over corporate earnings and global growth, boosted safe-haven demand for government debt. Live fuel prices and charts on NowPrice show how the energy market is reacting to these macro shifts, with crude oil extending its decline.

Looking ahead, traders will focus on upcoming economic data, including durable goods orders and the personal consumption expenditures price index, which could influence the Fed's policy path. The bond market will also watch for any further moves in oil prices and equity markets, as these remain key drivers of rate expectations. The 10-year yield is testing support near 4.20%, and a break below that level could signal further gains for Treasuries.