Treasuries Show Substantial Move Back To The Upside

(RTTNews) - Treasuries moved sharply higher during trading on Monday, regaining some ground following the steep drop seen over the two previous sessions.

Bond prices surged 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, plunged 9.8 basis points to 4.342 percent.

The rally by treasuries seemed to reflect bargain hunting, as some traders look to pick up bonds at reduced levels following recent weakness.

The ten-year yield pulled back sharply after reaching its highest closing level in eight months during last Friday's session.

Optimistic comments from President Donald Trump about the war in the Middle East also generated some buying interest.

Trump claimed in a post on Truth Social this morning that the U.S. has made "great progress" in discussions with a "new, and more reasonable, regime" to end military operations in Iran.

However, Trump warned that if a deal not reached shortly, the U.S. will "conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)"