US yields ease as CPI caution offsets Oil rally

U.S. Treasury yields dipped on Tuesday as cautious investors weighed upcoming inflation data and geopolitical tensions, overshadowing a jump in crude oil prices.

The decline in yields came despite a rally in oil markets that often fuels inflation expectations and pushes yields higher. Traders are instead focused on the imminent release of U.S. consumer price index figures, which could shape Federal Reserve policy expectations.

Uncertainty surrounding the U.S.-Iran standoff, where a resolution has yet to materialize, also added to the cautious mood, driving bids for safe-haven government debt and pulling yields lower.