WASHINGTON (dpa-AFX) - Extending the see-saw trend seen over the past few sessions, treasuries came under pressure during trading on Thursday following the advance seen last Friday.
Bond prices moved steadily lower throughout the day, closing firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.6 basis points to 4.410 percent.
The weakness among treasuries came amid a renewed surge by the price of crude oil, with U.S. crude oil futures jumping by more than 2 percent.
Crude oil futures surged after President Donald Trump rejected Iran's response to a U.S. proposal to end the months-long war, calling it 'totally unacceptable' in a post on Truth Social.
According to state media, Iran's counterproposal included demands for compensation over war damage and recognition of the Islamic Republic's sovereignty over the Strait of Hormuz.
Trump told reporters today the U.S.-Iran ceasefire is on 'life support' amid the ongoing dispute, describing the state of the truce 'unbelievably weak.'
Reports on consumer price and producer prices may attract attention in the coming days, as traders analyze the effect the recent spike in oil prices has had on inflation.
Treasuries saw further downside after the Treasury Department revealed this month's auction of $58 billion worth of three-year notes attracted below average demand.
The three-year note auction drew a high yield of 3.965 percent and a bid-to-cover ratio of 2.54, while ten previous three-year note auctions had an average bid-to-cover ratio of 2.64.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
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