WASHINGTON (dpa-AFX) - Treasuries recovered from yesterday's late-day weakness early in the session on Thursday but gave back ground over the course of the trading day.
Bond prices pulled back well off their best levels of the day but still managed to close modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.2 basis points to 4.451 percent.
Treasuries initially benefited from a positive reaction to news the U.S. and Iran have officially signed a preliminary agreement to end the Middle East war.
U.S. President Donald Trump and his Iranian counterpart Masoud Pezeshkian have each signed the memorandum of understanding setting up negotiations to reach a permanent peace deal
The MoU will enter into force with immediate effect and as a first step, Iran will reopen the Strait of Hormuz and the United States will lift the naval blockade of Iranian ports.
As per the 14-point framework deal, the U.S. and Iranian teams will begin talks to reach a final deal over the next 60 days.
The news has contributed to a steep drop by the price of crude oil, with crude oil futures pulling back further toward the levels seen before the war began in late February.
Buying interest waned over the course of the session, however, as traders continued to digest yesterday's Federal Reserve announcement.
While the Fed kept interest rates unchanged as widely expected, officials' projections said many expected to raise rates before the end of the year.
In U.S. economic news, a report released by the Labor Department showed a modest pullback in first-time claims for U.S. unemployment benefits in the week ended June 13th.
The Labor Department said initial jobless claims dipped to 226,000, a decrease of 4,000 from the previous week's revised level of 230,000.
Economists had expected jobless claims to edge down to 225,000 from the 229,000 originally reported for the previous week.
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