0539 GMT - U.S. Treasury yields decline across maturities, though stay at elevated levels, as Brent oil is largely stable, while market expectations of Federal Reserve interest-rate hikes are weakening. "Expectations of Fed hikes are being reduced," Danske Bank's Filip Andersson says in a note. The market is currently pricing in 35 basis points of Fed rate hikes for the next 12 months, less than Danske's call of two hikes of 25 basis points each. The Middle East situation remains fluid, with little progress in talks to reopen the Strait of Hormuz. The two-year Treasury yield falls 1.5 basis points to 4.155%, while the 10-year yield is down 1.4 basis points at 4.681%, according to Tradeweb.