WASHINGTON (dpa-AFX) - Treasuries moved sharply higher during trading on Wednesday, extending the upward move seen over the course of the previous sessions.
Bond prices surged early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped by 6.0 basis points to 4.356 percent.
With the decrease, the ten-year yield continued to give back ground after reaching its highest closing level since last July on Monday.
Treasuries benefitted from optimism about an end to the conflict in the Middle East after a report from Axios said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding.
Citing two U.S. officials and two other sources briefed on the issue, Axios said the deal would include Iran committing to a moratorium on nuclear enrichment and both sides lifting restrictions around transit through the Strait of Hormuz.
While noting that nothing has been agreed yet, the sources told Axios this was the closest the parties had been to an agreement since the war began.
Adding to the optimism about a peace deal, President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.
However, somewhat dampening the hopes for peace, Trump warned in a separate Truth Social post that the U.S. would resume bombing Iran 'at a much higher level and intensity than it was before' if they don't reach an agreement.
On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. jumped by more than expected in the month of April.
ADP said private sector employment shot up by 109,000 jobs in April after climbing by a downwardly revised 61,000 jobs in March.
Economists had expected private sector employment to grow by 85,000 jobs compared to the addition of 62,000 jobs originally reported for the previous month.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
