(RTTNews) - Following the rally seen in the previous session, treasuries showed a notable move back to the downside in early trading on Friday.
Bond prices regained ground following the early slump but still ended the day lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.4 basis points to 4.487 percent after reaching a high of 4.507 percent.
The early pullback by treasuries came amid uncertainty about the situation in the Middle East amid conflicting comments from President Donald Trump.
Trump called off a previously announced attack on Iran on Thursday and signaled that a peace deal was near, triggering the rally by bonds.
In a post on Truth Social this morning, however, Trump claimed terms of the deal leaked by Iran have "NOTHING to do with the terms that were agreed to, in writing."
Trump also referred to the Iranians as "very dishonorable people to deal with," adding, "With them, there is no such thing as dealing in good faith."
Reports have indicated the U.S.-Iran memorandum of understanding calls for the Strait of Hormuz to be reopened immediately without tolls and for Iran to receive sanctions relief based on compliance.
The deal would also reportedly extend the ceasefire for 60 days, including in Lebanon, with nuclear negotiations set be held during that time.
A report from Bloomberg said the U.S. and Iran may sign the agreement on the sidelines of the Group of Seven world leaders summit next week.
Bond prices regained some ground as the day progressed as optimism about a potential peace deal continues to weigh on crude oil prices.
An X post from Pakistani Prime Minister Shehbaz Sharif claiming a "final, agreed upon text of the peace deal has been reached" added to the positive sentiment.
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