WASHINGTON (dpa-AFX) - After skyrocketing over the course of the previous session, treasuries saw further upside during trading on Tuesday.
Bond prices gave back ground after an early advance but climbed back firmly into positive territory in early afternoon trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.1 basis points to 4.311 percent.
The ten-year yield added to the 9.8 basis point nosedive seen on Monday, pulling further off the eight-month closing high set last Friday.
The continued strength among treasuries came following reports President Donald Trump is looking to end the war in the Middle East.
A report from the Wall Street Journal said Trump told aides he's willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed.
Citing administration officials, the WSJ said Trump and his aides assessed that a mission to pry open the Strait of Hormuz would push the conflict beyond his timeline of four to six weeks.
The officials told the Journal that Trump would continue to pressure Tehran diplomatically to resume the free flow of trade through the strait, failing which he would pressure allies to take the lead.
After giving back some ground, treasuries moved back to the upside after a report from the New York Post said Trump also told the newspaper the U.S. would not be in the region 'too much longer.'
Trump also seemed to confirm the WSJ's report about expecting other countries to reopen the Strait of Hormuz, telling the Post, 'Let the countries that are using the strait, let them go and open it. because I would imagine whoever's controlling the oil will be very happy to open the strait.'
The price of crude oil turned lower in reaction to the Post report, generating optimism that the end of the war will lead to a pullback by oil prices and ease inflation concerns.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
