WASHINGTON (dpa-AFX) - Treasuries moved notably lower over the course of the trading day on Thursday, extending the downward trend seen over the past several sessions.
Bond prices came under pressure early in the session and saw further downside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.4 basis points to 4.418 percent.
The ten-year yield closed higher for the seventh time in the past eight sessions, reaching its highest closing level in a month.
The early weakness among treasuries came amid an extended surge by the price of crude oil, with U.S. crude oil futures soaring by nearly 7 percent.
U.S. crude oil futures have spiked back well above $100 a barrel amid the ongoing stalemate in the Middle East conflict between the U.S. and Iran.
Prices reached new highs after President Donald Trump told Axios the U.S. will continue its blockade of Iranian ports until the regime agrees to a deal that addresses concerns about its nuclear program.
Treasuries saw further downside after the Federal Reserve announced its widely expected decision to leave interest rates unchanged in an unusually divided vote.
The Fed said it decided to maintain the target range for the federal funds rate at 3.50 to 3.75 percent, citing its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.
In its accompanying statement, the Fed noted the conflict in the Middle East is contributing to a high level of uncertainty about the economic outlook and reiterated it is attentive to risks to both sides of its dual mandate.
While the Fed noted the unemployment rate has been little changed in recent months, the statement described inflation as 'elevated' due in part to the recent surge in global energy prices.
The decision to leave rates unchanged was widely expected, although the vote was unusually divided, with four Federal Open Market Committee members dissenting for the first time since October 1992.
The Fed said Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan supported keeping rates unchanged but 'did not support inclusion of an easing bias in the statement at this time.'
The statement said, 'In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.'
The trio purportedly took issue with the use of the word 'additional,' as the latest actions by the Fed have been to lower interest rates.
Meanwhile, Fed Governor Stephen I. Miran also dissented, as he continued to prefer cutting rates by a quarter point.
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