Ten-Year Yield Jumps To Highest Closing Level Since July 2007

(RTTNews) - Following the slump seen in the previous session, treasuries have seen further downside over the course of the trading day on Thursday.

Bond prices showed a lack of direction early in the day but slid firmly into negative territory as the session progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 5.0 basis points to 5.160 percent.

The ten-year yield added to the 5.0 basis point surge seen on Wednesday, reaching its highest closing level since July 2007.

The continued weakness among treasuries came amid an extended surge by the price of crude oil, with U.S. crude oil futures spiking more than 3 percent.

Crude oil prices are adding to yesterday's 2.6 percent jump following conflicting speeches by President Donald Trump and Iranian President Masoud Pezeshkian at the UN General Assembly.

Trump threatened to "annihilate" Iran in his remarks, while Pezeshkian condemned what he called "signs of a bullying mentality" from the U.S. and said that Iran would never surrender.

The price of crude oil pulled back well off its highs following a report U.S. and Iranian negotiators are discussing a phased deal to end the conflict.

A report from Reuters citing sources close to the talks said US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran,

Treasuries initially rebounded in reaction to the report but moved back to the downside, as bond traders seem to be growing tired of reports of a potential deal and awaiting more concrete developments.