WASHINGTON (dpa-AFX) - After moving sharply lower over the past several sessions, treasuries showed a strong move back to the upside during trading on Wednesday.
Bond prices surged in morning trading and continued to turn in a strong performance throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 9.5 basis points to 4.572 percent.
The ten-year yield gave back ground after spiking to its highest levels since early January of 2025 in the previous session.
Treasuries benefitted from a substantial pullback by the price of crude oil, with U.S. crude oil futures plummeting by nearly 6 percent amid renewed optimism about an end to the U.S.-Iran war.
Crude oil futures tumbled below $100 a barrel after President Donald Trump claimed the U.S. conflict with Iran is in the 'final stages.'
At the same time, Trump continued to leave open the possibility of renewing military attacks against Iran, telling reporters, 'We'll either have a deal or we're going to do some things that are a little bit nasty.'
Bond traders seemed to shrug off the minutes of the Federal Reserve's latest monetary policy meeting, which provided some additional details about officials' mixed views about the outlook for rates.
The Fed said participants generally judged that continued elevated inflation readings together with uncertainty related to the Middle East conflict could necessitate keeping rates unchanged for longer than previously anticipated.
Several participants felt it would likely be appropriate to cut rates once there are clear indications that disinflation is firmly back on track or if solid signs emerge of greater weakness in the labor market, the Fed said.
However, the minutes revealed a majority of participants felt that some policy firming would likely become appropriate if inflation were to continue to run persistently above 2 percent.
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