Treasury yields little changed as oil price oscillates

Yields on U.S. Treasurys fell across the curve early Wednesday, as oil prices were mixed.

As of 4:40 a.m. ET, the yield on the benchmark 10-year Treasury was flat at 4.963%. The 2-year Treasury yield was also little changed at 4.771%, while the 30-year Treasury yield held at 5.3%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Yields initially moved lower in tandem with oil prices in the early hours of Wednesday morning, but flattened as Brent crude oil futures for November delivery rose into positive territory.

The contracts were last seen trading 0.5% higher at $99.80 per barrel.

U.S. West Texas Intermediate crude oil futures remained in the red, shedding 0.3% to trade at $90.28 a barrel.

Prices fell overnight after U.S. and Iranian delegations held talks at the U.N. General Assembly on Tuesday, lifting hopes that supply disruptions in the Middle East may ease.

Surging oil prices, sparked by the Iran war and consequential shutdown of the Strait of Hormuz, have been at the center of mounting inflation fears this year. Brent crude, the global benchmark, is still trading more than a third higher than its pre-war price.

Fixed income investors are also analyzing remarks from Federal Reserve officials in hopes of determining how hawkish sentiment at the central bank has become.

Michael S. Barr, a member of the Fed's Board of Governors, will give a speech in Chicago on the economic outlook on Wednesday morning, a week after the bank raised interest rates and hinted that further tightening could be in the cards.

His speech comes after Boston Federal Reserve President Susan Collins warned in a LinkedIn post of "an increased likelihood" that U.S. inflation will remain "notably" above policymakers' 2% target.

Wednesday will also see the publication of S&P Global Purchasing Managers' Index figures for September. Initial jobless claims data will be released on Thursday.