WASHINGTON (dpa-AFX) - After coming under pressure over the course of the previous session, treasuries saw some further downside during trading on Tuesday.
Bond prices regained some ground after an initial slump but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 1.8 basis points to 4.354 percent after reaching a high of 4.378 percent.
The ten-year yield added to 2.6 basis point increase seen on Monday, ending the day at its highest closing level in a month.
An extended surge by the price of crude oil weighed on treasuries, with U.S. crude oil futures surging above $100 a barrel before giving back ground.
Crude oil prices have soared over the past few sessions amid an ongoing stalemate in the Middle East conflict between the U.S. and Iran.
The latest spike comes amid indications President Donald Trump is unlikely to accept Iran's proposal to reopen the Strait of Hormuz and end the war, while setting aside discussions on Iran's nuclear program.
Trump claimed in a post on Truth Social that Iran is in a 'state of collapse' and wants to open the Strait or Hormuz as quickly as possible as they try to figure out their leadership situation.
CNN reported that Iran is coming up with a 'revised proposal' and added that mediators in Pakistan are awaiting the new plan to end the war.
The continued weakness among treasuries also came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
With the Fed widely expected to leave interest rates unchanged, traders will pay close attention to the accompanying statement for clues about the outlook for rates.
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