Treasuries Show Another Significant Move To The Downside

(RTTNews) - Treasuries showed a notable move to the downside during trading on Thursday, extending the slump seen in the previous session.

Bond prices moved modestly lower early in the session and slid more firmly into negative territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, shot up 6.5 basis points to 4.273 percent.

The ten-year added to the 7.2 basis point surge seen during Wednesday's session, reaching its highest closing level in over a month.

The extended slump by treasuries came as the price of crude oil moved sharply higher, continuing to recover from the nosedive seen on Tuesday.

U.S. crude oil for April delivery has spiked by nearly 11 percent to $96.70 a barrel but remains well off Monday's highs near $120 a barrel.

International benchmark Brent crude futures for May delivery also shot up by 9.2 percent, surging back above $100 a barrel

The extended rebound by the price of crude oil comes amid reports three more foreign ships were struck in the Persian Gulf overnight, adding to concerns about transit through the strategically vital Strait of Hormuz.

Energy Secretary Chris Wright told CNBC in an interview this morning that the U.S. Navy is "not ready" to escort oil tankers through the strait.

Iran's new Supreme Leader Mojtaba Khamenei also said the Strait of Hormuz must remain closed as a "tool to pressure enemy."

In U.S. economic news, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended March 7th.

The Labor Department said initial jobless claims slipped to 213,000, a decrease of 1,000 from the previous week's revised level of 214,000.

Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.

Readings on consumer prices, durable goods orders and consumer sentiment may attract some attention on Friday but are likely to be overshadowed by the latest developments in the Middle East.