WASHINGTON (dpa-AFX) - Following the pullback seen over the two previous sessions, treasuries showed a strong move back to the upside during trading on Friday.
Bond prices surged early in the session and remained sharply higher throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.3 basis points to 4.246 percent.
The ten-year yield more than offset the 5.3 basis point jump seen over the two previous sessions, falling to its lowest closing level in a month.
The rebound by treasuries came following news that Iran has declared the Strait of Hormuz completely open to commercial traffic on the heels of the 10-day ceasefire between Israel and Lebanon.
In a post on Truth Social, Trump said the Strait of Hormuz is 'completely open and ready for business' but said the U.S. will continue its blockade of Iranian ports until a final peace agreement is reached.
The news of the temporary reopening of the strait has led to a nosedive by the price of crude oil, easing concerns about the outlook for inflation.
Treasuries also benefitted from continued optimism about the potential end of the U.S. war with Iran following the latest comments by Trump.
At an event in Las Vegas on Thursday, Trump claimed the 'war in Iran is going along swimmingly' and 'should be ending pretty soon.'
Trump's latest remarks echo similar optimistic predictions he has made throughout the war, but his comments still generate positive sentiment.
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