WASHINGTON (dpa-AFX) - Treasuries moved notably lower over the course of the trading day on Tuesday, extending the downward move seen in the previous session.
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 5.3 basis points to 4.463 percent.
The ten-year yield added to the 4.6 basis point advance seen on Monday, reaching its highest closing level in ten months.
An extended surge by the price of crude oil weighed on treasuries, with U.S. crude oil futures soaring by more than 4 percent and jumping back above $100 a barrel.
The continued increase by the price of crude oil comes as the U.S. and Iran struggle to reach an agreement to end the war and reopen the critical Strait of Hormuz.
President Donald Trump told reporters on Monday that the U.S.-Iran ceasefire is on 'life support' amid the ongoing dispute, describing the state of the truce 'unbelievably weak.'
The weakness among treasuries also came following the release of a report from the Labor Department showing the fastest annual rate of consumer price growth since May 2023.
The report said the annual rate of growth by consumer prices accelerated to 3.8 percent in April from 3.3 percent in March, reflecting sharply higher energy prices.
Treasuries saw further downside after the Treasury Department revealed this month's auction of $42 billion worth of ten-year notes attracted below average demand.
The ten-year note auction drew a high yield of 4.468 percent and a bid-to-cover ratio of 2.40, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.49.
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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