The yield on Brazil’s 10-year government bond fell to 13.5, its lowest level in 11 weeks. The drop was driven directly by the reopening of the Strait of Hormuz, which emerged as the dominant catalyst in today’s markets. This geopolitical development pushed the U.S. dollar down to 97 and sent oil prices tumbling 12% to 83. As the “war premium” dissipated, demand for Brazilian debt increased sharply, lifting bond prices and forcing yields lower. With cheaper energy easing inflation concerns, the yield is now moving back toward the year-to-date lows last seen in early February.