Bond sell-off has eased and U.S. long-term yields fell, though markets still face the risk of higher borrowing costs. A confrontation in the Strait of Hormuz has kept oil near $90, adding to inf concerns. Rising government debt and heavier issuance to finance data centers have heightened fixed-income volatility.

Tonight’s 20-year Treasury auction will test demand for long-term paper.

The 30-year yield slipped to 5.19% from Tuesday’s 5.284% settlement; the 10-year fell to 4.62% from 4.706%.