Treasury yields fall on Strait of Hormuz deal hopes

Governments borrow money by selling bonds called Treasurys, and the interest they pay is called the yield.

On Wednesday, Treasury yields went down.

That happened partly because oil prices dropped.

Oil prices dropped because people hoped a deal would reopen the Strait of Hormuz, an important waterway for ships.

The U.S. and Iran have been talking about ending a war.

President Donald Trump said the talks were going well but warned he could hit Iran 'really hard' without a deal.

Lower oil prices can help slow rising prices, which is called inflation.

Traders now think there is a 55% chance the Federal Reserve will raise interest rates in September.

A report showed fewer new jobs were created in July than expected.

On Friday, the government will release a bigger jobs report that many people are waiting to see.