WASHINGTON (dpa-AFX) - Treasuries recovered from early weakness and spent much of Monday's session lingering near the unchanged line before once again coming under pressure later in the day.
Bond prices moved to the downside in afternoon trading and ended the day firmly in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 2.8 basis points to 4.724 percent.
Treasuries moved lower as the price of crude oil moved sharply higher amid concerns about a re-escalation of the conflict in the Middle East, with U.S. crude oil futures surging by more than 3 percent.
Crude oil futures spiked amid indications Iran has ruled out talks with the U.S. to extend a 60-day ceasefire that expires today.
'We did not start any negotiations at all, and the U.S. violated the understanding from the very beginning; therefore, the 60-day issue is not relevant,' Iran Foreign Ministry spokesman Esmail Baghaei said, according to state news agency Tasnim.
Adding to worries about a broader conflict, President Donald Trump threatened to bomb Oman during an interview with Fox News, warning, 'If Oman gets in the way, we'll bomb the s--- out of them.'
Trump's threat comes as Iran and Oman appear to be moving closer to an understanding over the management of the Strait of Hormuz.
In U.S. economic news, the Federal Reserve Bank of New York released a report showing New York manufacturing activity grew strongly in the month of August.
The New York Fed said its general business conditions index climbed to 20.6 in August from 15.6 in July, with a positive reading indicating growth. Economists had expected the index to fall to 11.0.
With the unexpected increase, the New York Fed's general business conditions index reached its highest level since hitting 34.4 in December 2021.
The National Association of Home Builders released a separate report unexpectedly showing a modest improvement in U.S. homebuilder confidence in the month of August.
The report said the NAHB/Wells Fargo Housing Market Index ticked up to 35 in August from 34 in July. Economists had expected the index to edge down to 33.
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