Treasuries Rebound Amid Reports Of U.S.-Iran Peace Plan

(RTTNews) - Treasuries showed a strong move to the upside during trading on Wednesday, bouncing back following the weakness seen in the previous session.

Bond prices advanced early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.4 basis points to 4.328 percent.

The ten-year yield gave back ground after jumping to its highest closing level in almost eight months during Tuesday's session.

Treasuries extended the volatility seen of over the past few days, which has largely driven in reaction to swings by the price of crude oil in reaction to the latest news regarding the war in the Middle East.

Crude oil prices have pulled back sharply after surging in the previous session after a report from the New York Times said the U.S. has sent Iran a 15-point plan to end the war in the Middle East.

Citing two officials briefed on the diplomacy, the New York Times said the plan, delivered by way of Pakistan, said it addresses Iran's ballistic missile and nuclear programs.

The New York Times acknowledged it is unclear whether Iran was likely to accept the plan as a basis for negotiations but argued the delivery of the plan showed the administration is ramping up efforts to conclude the war.

As diplomatic efforts gather pace, Iran has told the United Nations Security Council and the International Maritime Organization that "non-hostile vessels" may transit the Strait of Hormuz with Tehran's consent.

However, a report from Iran's state-linked media Fars News Agency claimed Iran will not accept the ceasefire offer from the U.S.

"Iran does not accept the ceasefire," an informed source told FARS, according to a translation of the news site's Telegram page. "Basically, it is not logical to enter into such a process with the violators of the agreement."