Two-year yields dip as Hormuz flows rise, hopes on inflation grow

US Treasury yields fell on Friday, with the 2-year note yield dropping 3.5 basis points to 4.086 percent and the benchmark 10-year yield falling 2.15 basis points to 4.371 percent, as easing oil prices linked to increased Strait of Hormuz shipments boosted hopes of lower inflation. Fed funds futures traders are pricing in two rate hikes this year, with 60 percent odds of the first increase by September, though a majority of economists polled by Reuters expect the US central bank to hold rates steady through 2026. The June jobs report due on July 2 is expected to show employers added 110,000 jobs, a key data point that could shift policy expectations.