Ten-Year Yield Surges To Highest Closing Level Since Last July

(RTTNews) - Treasuries moved sharply lower during trading on Monday, more than offsetting the rebound seen over the two previous sessions.

Bond prices moved steadily downward over the course of the morning and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 6.8 basis points to 4.446 percent.

With the significant increase on the day, the ten-year yield ended the session at its highest closing level since last July.

The sharp pullback by treasuries came amid a substantial increase by the price of crude oil, with U.S. crude oil futures surging by 3.2 percent.

Crude oil prices spiked after a social media post from the United Arab Emirates's Defense Ministry said four cruise missiles launched from Iran were detected toward various areas across the country.

"Three were successfully engaged over the country's territorial waters, while one fell in the sea," the post continued. "The Ministry of Defense affirmed that the sounds heard in different parts of the country are a result of air defence systems engaging threats."

A report from Reuters indicating a fire broke out at a major oil industry zone in the U.A.E. following an Iranian drone attack also added to concerns about a re-escalation of the Middle East conflict.

Over the weekend, President Donald Trump said he would be reviewing a new peace proposal from Iran but said he "can't imagine that it would be acceptable."

"They have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years," Trump said of Iran in a post on Truth Social.

Trump said in a separate post that the U.S. would soon begin helping to "free" ships from countries not involved with the Middle East dispute that are stranded due to the closure of the Strait of Hormuz.

"If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully," Trump said.

The news of the president's plan comes amid reports Iran's Navy has blocked "American-Zionist" warships from entering the Strait of Hormuz.

Iranian state media also claimed the Islamic Revolutionary Guard Corps hit a U.S. warship with two missiles, although U.S. Central Command denied the report and said, "No U.S. Navy ships have been struck."