WASHINGTON (dpa-AFX) - After seeing modest strength for much of the session, treasuries rallied in the latter part of the trading day on Thursday.
Bond prices surged to upside in early afternoon trading before ending the day sharply higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled 7.9 basis points to 4.463 percent.
The late-day rally by treasuries came as crude oil prices plunged after President Donald Trump called off previously announced attacks against Iran.
Trump said in a post on Truth Social that the decision was 'based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved.'
The reversal came after said in early post that the U.S. would be hitting Iran 'very hard tonight' and claimed he plans to assume total control of their oil and gas markets 'at some point in the not too distant future.'
Meanwhile, bond traders seemed to shrug off a report from the Labor Department showing producer prices increased by more than expected in the month of May.
The Labor Department said its producer price index for final demand shot up by 1.1 percent in May, matching a downwardly revised jump in April.
Economists had expected producer prices to climb by 0.7 percent compared to the 1.4 percent surge originally reported for the previous month.
The report also said the annual rate of producer price growth accelerated to 6.5 percent in May from 5.7 percent in April, reaching the fastest rate of growth since November 2022.
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