WASHINGTON (dpa-AFX) - Following the significant rebound seen in the previous session, treasuries showed a notable move back to the downside during trading on Tuesday.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 5.8 basis points to 4.392 percent.
The ten-year yield more than offset the 5.7 percent slump seen during Monday's trading, reaching its highest closing level in almost eight months.
The pullback by treasuries came amid a rebound by the price of crude oil, with international benchmark Brent crude futures surging back above $100 a barrel.
Brent crude futures plunged by nearly 11 percent during Monday's trading after President Donald Trump claimed the U.S. and Iran held productive talks to end the conflict in the Middle East.
Oil is rebounding as Israel and Iran have continued to exchange strikes, with huge explosions heard in Tehran and other cities, as Iran denied it held talks with the U.S. to end the war.
'Iranian people demand complete and remorseful punishment of the aggressors,' Iranian Parliament Speaker Mohammad Bagher Ghalibaf wrote in response to Trump's comments.
He claimed Trump's latest rhetoric 'is used to manipulate the financial and oil markets and escape the quagmire in which the U.S. and Israel are trapped.'
Iran's foreign ministry said Trump's remarks were 'part of efforts to reduce energy prices and buy time' for military plans.
As the conflict entered its 25th day with no immediate signs of de-escalation, Saudi Arabia and the United Arab Emirates are edging toward joining the fight against Iran, the Wall Street Journal reported.
The spike in crude oil prices in reaction to the Middle East war has led to renewed concerns about inflation and the outlook for interest rates, weighing on treasuries.
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