WASHINGTON (dpa-AFX) - After recovering from an early move to the downside, treasuries showed a lack of direction for much of the trading day on Monday before eventually closing moderately higher.
Bond prices advanced late in the session after spending much of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.8 basis points to 4.299 percent.
The choppy trading seen for most of the session came as traders kept an eye on developments in the Middle East after weekend talks between the U.S. and Iran failed to produce an agreement.
'They have chosen not to accept our terms,' U.S. Vice President JD Vance said in a brief news conference but left open the possibility that terms could still be reached. Iran said that 'unreasonable U.S. demands' prevented the progress of the negotiations.
Traders seemed to shrug off news that President Donald Trump has imposed a blockade of all maritime traffic entering and exiting Iranian ports
'Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,' Trump said in a post on Truth Social.
Trump also said the U.S. military is 'locked and loaded' and prepared to 'finish up the little that is left of Iran' at an 'appropriate moment.'
While the news contributed to a significant increase by the price of crude oil, traders seem optimistic Trump will back down once again and avoid a return to war.
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