WASHINGTON (dpa-AFX) - Following the rebound seen in the previous session, treasuries turned in another strong performance during trading on Tuesday.
Bond prices moved sharply higher morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.5 basis points to 4.639 percent.
Treasuries benefitted from an extended nosedive by the price of crude oil, which has continued to give back ground after snapping a six-day winning streak on Monday.
After plunging by more than 2 percent during yesterday's trading, U.S. crude oil futures are plummeting by more than 3 percent.
The extended pullback in crude oil prices comes after the Treasury Department officially announced 'Operation Economic Outcast,' calling it an unprecedented, whole-of-government, economic campaign against Iran and its 'enablers.'
While the U.S. sanctioned nearly 60 entities, individuals, and vessels that it said 'enable the Iranian regime's recklessness,' traders seem relieved the Treasury stopped short of immediate secondary sanctions against other countries sustaining Iran's trade.
Traders also seem optimistic that the Trump administration's shift toward economic measures to pressure Iran has reduced the likelihood of the resumption of a full-scale military offensive.
In U.S. economic news, the Conference Board released a report showing a modest decrease in consumer confidence in the month of August amid a deterioration in consumer expectations
The Conference Board said its consumer confidence index dipped to 89.4 in August from a downwardly revised 90.2 in July.
Economists had expected the consumer confidence index to edge down to 90.1 from the 90.8 originally reported for the previous month.
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