WASHINGTON (dpa-AFX) - After coming under pressure early in the session, treasuries have shown a significant turnaround over the course of the trading day on Thursday.
Bond prices have climbed well off their early lows and firmly into positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, has fallen 5.0 basis points to 5.227 percent after reaching a high of 5.354 percent.
The early slump by treasuries came as the price of crude oil skyrocketed amid concerns about a re-escalation of the conflict in the Middle East.
Crude oil prices surged early in the day after a report from NBC News said President Donald Trump and his national security team have discussed possibly resuming large-scale U.S. military operations in Iran in the coming weeks.
Citing a U.S. official and another person with knowledge of the discussions, NBC News said the options included launching strikes before the midterm elections next month.
However, the price of crude oil pulled back off its highs after Trump denied the U.S. would be attacking Iran at any time prior to the elections.
Trump also claimed in a post on Truth Social that the U.S. is having 'productive discussions' with Iran and that oil is flowing through the Strait of Hormuz at 'record numbers of barrels.'
The price of crude oil remains sharply higher, but the pullback triggered a rebound by treasuries that was supported by the results of the Treasury Department's auction of $22 billion worth of thirty-year bonds.
The thirty-year bond auction attracted above average demand, drawing a bid-to-cover ratio of 2.54 compared to the average of 2.43 over the ten previous thirty-year bond auctions.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
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