Treasuries Show Notable Pullback As Crude Oil Prices Rebound

(RTTNews) - Treasuries showed a notable move to the downside during trading on Thursday, giving back ground after trending higher over the past few sessions.

Bond prices moved moderately 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, jumped 5.3 basis points to 4.670 percent.

The pullback by treasuries came amid a substantial rebound by the price of crude oil, with U.S. crude oil futures surging by more than 3 percent after plummeting by more than 11 percent over the three previous sessions.

Crude oil prices jumped early in the session amid reports of Houthi rebel attacks on Saudi tankers in the Red Sea and Gulf of Aden.

Prices saw further upside after a report from Iranian state news agency Fars indicated an initial draft of an agreement between Iran and Oman to reopen the Strait of Hormuz would impose restrictive conditions on ship traffic.

According to the apparent draft, Iran would ban U.S. and Israeli ships from transiting the strait, while other nations that have harmed Iran would be required to pay compensation before being allowed to transit.

When asked about the Fars report, a U.S. official told CNBC, "Any temporary routes will be without any impediments — meaning no approvals or permissions and no tolls or charges."

"The Strait of Hormuz is an international waterway and no party controls the lanes or the ability to transit through them," the official added.