Yields Slip Despite Oil Rally Amid Pre-Inflation Caution

US Treasury yields eased on Tuesday despite oil prices reaching a seven-day high of $84.61, as investors remain cautious ahead of key inflation data releases.

The West Texas Intermediate (WTI) crude benchmark hit a seven-day high, but the US 10-year benchmark note dipped one basis point to 4.69%.

Market analysts expect July's Consumer Price Index (CPI) to decline slightly from 3.5% to 3.4% year over year, while core CPI is forecasted to decrease from 2.6% to 2.5% YoY.

The Producer Price Index is also projected to soften in August, which could influence the Federal Reserve's rate hike expectations for 2026.