Treasuries Rebound As Trump Backs Down On Threats To Attack Iran's Power Plants

(RTTNews) - Treasuries showed a strong move to the upside during trading on Monday, regaining ground after moving sharply lower over the past few sessions.

Bond prices gave back ground after an early surge but bounced back firmly into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.7 basis points to 4.334 percent.

The pullback by the ten-year yield came after it skyrocketed to a nearly eight-month closing high during last Friday's session.

Treasuries rebounded in reaction to President Donald Trump backing down from his threats to "obliterate" Iran's power plants unless they fully reopen the Strait of Hormuz.

In a post on Truth Social, Trump said the U.S. and Iran have had "very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East."

Trump said he has subsequently instructed the War Department to postpone all military strikes on Iran's power plants and energy infrastructure for a five-day period.

The president later told CNBC's Joe Kernen that the U.S. is "very intent on making a deal with Iran" after previously claiming he wasn't interested in a deal.

Trump had threated to "obliterate" Iran's power plants if they didn't reopen the Strait of Hormuz within 48 hours.

Iran warned it would strike energy and water infrastructure across the Gulf in retaliation if Trump followed through with his threat.

Treasuries gave back some ground in late morning trading as Iran's state-run media said the country's foreign ministry has denied negotiating with the U.S.

Trump told reporters the U.S. is speaking with a "top person" in Iran who he believes if the "most respected" but acknowledged it is not the new supreme leader, Mojtaba Khamenei.