WASHINGTON (dpa-AFX) - Treasuries saw considerable weakness during trading on Wednesday, extending the downward move seen in the previous session.
Bond prices regained some ground in afternoon trading and a morning slump but remained firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.0 basis points to 4.569 percent.
The continued weakness among treasuries came amid concerns about a re-escalation of the conflict in the Middle East after President Donald Trump declared the U.S.-Iran ceasefire 'over.'
'As far as I'm concerned, it's over,' Trump told reporters at the NATO summit in Ankara, Turkey, calling negotiations with Iran a 'waste of time.'
The president later said that the U.S. will 'very probably' attack Iran 'hard again tonight.'
Trump's comments have contributed to a surge by the price of crude oil, with U.S. crude oil futures spiking by more than 4 percent. The jump in prices has led to renewed concerns about the outlook for inflation and interest rates.
Trump's remarks came after U.S. Central Command said it completed a new round of offensive strikes against Iran, hitting over 80 targets in response to Iran's latest attacks on commercial vessels transiting the Strait of Hormuz.
Iran's Revolutionary Guard Corps claimed they targeted U.S. military sites in Bahrain and Kuwait hours after the U.S. strikes.
Bond prices regained some ground after the Treasury Department revealed this month's auction of $39 billion worth of ten-year notes attracted above average demand.
The ten-year note auction drew a high yield of 4.580 percent and a bid-to-cover ratio of 2.59, 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.
Meanwhile, the minutes of the Fed's latest monetary policy meeting confirmed officials have mixed views about the outlook for rates but did not provide much clarity about the central bank's next move.
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