WASHINGTON (dpa-AFX) - Treasuries extended their recent downward trend in early trading on Monday but showed a notable turnaround over the course of the session.
Bond prices climbed well off their early lows and into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.4 basis points to 4.961 percent.
Early in the day, the ten-year yield rose as high as 5.012 percent, climbing above 5 percent for the first time since October 2023.
The rebound by treasuries came as the price of crude oil pulled back well off its highs of the session after surging earlier in the day.
After soaring nearly 5 percent early in the day, the price of crude oil for October delivery was last seen trading up by 0.8 percent.
The pullback by the price of crude oil may have reflected President Donald Trump's claim on Truth Social that Russia and Ukraine have agreed to stop attacking each other's energy targets.
Trump also reiterated his claims that Iran wants to 'make a deal, quickly and badly' and that 'oil is flowing through the Hormuz Strait.'
Crude oil prices surged early in the day amid renewed supply concerns after Saudi Arabia closed a critical pipeline that bypasses the Strait of Hormuz following a drone attack.
News that a planned meeting in Oman between Iran and Gulf states over reopening the Strait of Hormuz has been postponed also contributed to the increase in the price of crude oil.
Meanwhile, traders are also looking ahead to the Federal Reserve's highly anticipated monetary policy decision later this week.
With oil prices surging and recent data pointing to sticky inflation, CME Group's FedWatch tool is currently indicating a 92.5 percent chance the Fed will raise rates by a quarter point.
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