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(RTTNews) - After moving to the upside early in the session, treasuries showed a significant downturn over the course of the trading day on Thursday.
Bond prices pulled back well off their highs of the session and into negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.6 basis points to 4.392 percent after hitting a low of 4.314 percent.
The ten-year yield regained ground after moving notably lower over the two previous sessions but remains well off Monday's nearly ten-month closing high.
Treasuries initially benefitted from an extended nosedive by the price of crude oil, with U.S. crude oil inventories plunging below $90 a barrel amid ongoing optimism about a peaceful end to the conflict in the Middle East.
President Donald Trump said Wednesday that the U.S. and Iran have had "good talks over the last 24 hours" and expressed confidence a deal could be reached in the coming days.
A report from Axios said U.S. officials expect Iran's response to a one-page memorandum of understanding to end the war within the next 24-48 hours.
However, crude oil prices have shown a substantial turnaround over the course of the day, with U.S. crude oil futures jumping by more than 1.4 percent after plummeting by as much as 5.5 percent.
Crude oil prices bounced back after a report from CNN said Iran is attempting to force shippers to comply with a new protocol for transiting the Strait of Hormuz.
CNN said it has seen an application form issued by Iran's newly created Persian Gulf Strait Authority that must be completed by all transiting vessels to ensure safe passage.
With the document seen as part of efforts by Iran to formalize control over the waterway, the report has led to renewed concerns about a re-escalation of the Middle East conflict.
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