WASHINGTON (dpa-AFX) - Treasuries showed a substantial move to the downside during trading on Thursday, extending the downward move seen over the past several sessions.
Bond prices moved sharply lower in early trading and saw further downside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, spiked 10.7 basis points to 4.944 percent.
With the continued surge on the day, the ten-year yield once again jumped to its highest closing level in almost three years.
The continued weakness among treasuries came as the price of crude oil skyrocketed, with U.S. crude oil futures soaring above $100 a barrel for the first time since May amid concerns about a prolonged war between the U.S. and Iran.
A Wall Street Journal report citing U.S. officials said top White House advisers have privately raised the prospect with President Donald Trump that the war could drag on through the remainder of his term.
Trump suggested on Wednesday that the U.S.-Iran war would end immediately after the midterm elections, although he has repeatedly claimed that the seven-month-old conflict would end soon.
Higher crude oil prices have added to concerns about the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.
CME Group's FedWatch Tool is currently indicating a 73.1 percent chance that the Fed will raise rates by a quarter point following the meeting.
A rate hike is still expected after the Labor Department released its report on producer price inflation in the month of August.
While the report showed producer prices increased in line with economist estimates on a monthly basis, the annual rate of price growth accelerated by slightly more than expected.
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