WASHINGTON (dpa-AFX) - Treasuries gave back ground after an early advance on Friday but moved back to the upside as the day progressed.
Bond prices climbed back into positive territory late in the session after pulling back near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.8 basis points at 4.558 percent.
The higher close by treasuries came amid persistent optimism about an end to the U.S.-Iran war even as crude oil and gasoline prices remain elevated going into the busy Memorial Day weekend.
In remarks to reporters on Thursday, Secretary of State Marco Rubio claimed the U.S. and Iran have made 'some progress' in negotiations to end the war.
Rubio also said there have been 'some good signs' but cautioned he doesn't want to be 'overly optimistic' and noted President Donald Trump has been clear he has 'other options' if the U.S. and Iran can't get a 'good deal.'
One of the sticking points seems to be Iran's efforts to establish a tolling system for the Strait of Hormuz, which Rubio called 'unacceptable' and 'would make a diplomatic deal unfeasible.'
Rubio's comments came as reports from Iranian state media suggest the latest U.S. peace proposal has narrowed some of the gaps between the two countries.
Treasuries gave back ground after an early advance after the University of Michigan released a showing a significant deterioration in consumer sentiment in May along with increases in both year-ahead and long-run inflation expectations.
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