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U.S. Treasury yields fell sharply early Wednesday as hopes of a meaningful de-escalation in the two-month-long war in the Middle East sent energy prices lower.

Yields on 10-year U.S. Treasurys

— the benchmark for government borrowing — moved 6 basis points lower to 4.0075%.

Shorter- and longer-dated yields also ticked lower in the early hours. The yield on the 2-year Treasury