Global sovereign debt markets settled into a quieter pattern on Tuesday after weeks of sharp duration volatility, helped by lower crude prices and reports that the U.S. Department of the Treasury may use its Treasury General Account (TGA) cash balance to fund an expanded debt buyback program. The two-year Schatz yield fell to 2.852%, while the benchmark 10-year Bund yield edged up to 3.249%. France’s 10-year OAT yield held at 4.117%, and Italy’s 10-year BTP yield stabilized at 4.080%. Brent crude traded near $91.50 a barrel after the U.S. administration’s much-publicized "economic D-Day" against Tehran largely reiterated existing sanctions rather than imposing immediate, unexpected blockades on Middle East energy transit. Germany’s gross domestic product grew 1.0% year-on-year in the second quarter, above the 0.9% consensus forecast and up from 0.7% in the first quarter. The combination of steadier oil prices and resilient growth allowed money markets to retain pricing for a potential 25-basis-point ECB rate hike in September without driving yields back to multi-decade highs. Traders are next watching Nvidia Corp.’s second-quarter earnings on Wednesday and Federal Reserve Chair Kevin Warsh’s inaugural keynote at the Jackson Hole Symposium on Friday.