Crude oil prices have fallen to their lowest in three months, lowering inflation forecasts and bond yields.

The fall is attributed to global demand uncertainties, record US output, and easing Gaza war supply concerns.

Softer energy prices, a cooling job market, and rising credit card delinquencies have lowered bond market two-year inflation expectations to 2.2%, their lowest in almost a month.

The situation should relieve Federal Reserve Chair Jerome Powell, who is slated to appear on Wednesday.

The real-time model suggests a steep drop to 1.45% annualized growth from 4.9% in Q3. The Fed board governors present a divided assessment of policy needs, with some hawkish and others dovish.

The US 10-year rates were down at 4.57% before Wednesday’s auction.