WASHINGTON (dpa-AFX) - Following the weakness seen in the previous session, treasuries showed a lack of direction over the course of the trading day on Wednesday.
Bond prices quickly gave back ground after an initial advance and spent the rest of the day lingering near the unchanged line. The yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 4.294 percent.
Treasuries initially benefitted from yesterday afternoon's news news that President Donald Trump has extended the U.S. ceasefire with Iran.
Calling Iran's government 'seriously fractured,' Trump said in a post on Truth Social that the U.S. would hold off on attacking Iran until their leaders 'come up with a unified proposal.'
However, buying interest quickly faded as Trump also said he has directed the U.S. military to continue its blockade of all maritime traffic entering and exiting Iranian ports.
Iran dismissed Trump's ceasefire extension as 'meaningless' and said the Strait of Hormuz will remain closed until the U.S. blockade is lifted.
Mahdi Mohammadi, a senior adviser to Iranian Parliament Speaker Mohammad Bagher Ghalibaf, termed the ceasefire extension a ploy 'to buy time for a surprise strike,' adding the 'losing side cannot dictate terms.'
Shortly after Trump's ceasefire announcement, Iran's Revolutionary Guard Navy claimed it has seized two container ships in Strait of Hormuz for 'maritime violations.'
The back and forth between Trump and Tehran has led to some uncertainty, although traders generally remain hopeful about an eventual resolution of the conflict.
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