US Treasury bond prices showed modest strength on July 24 at 9:03 AM US Eastern Time, with the 10-year Treasury yield falling 1.90 basis points to 4.684%. The price uptick followed a correction in oil markets after crude prices had rallied for six consecutive trading days. The bond market movements occurred against a backdrop of nearly two weeks of military conflict between the US and Iran, with Iran's Islamic Revolutionary Guard Corps announcing attacks on US military bases in Kuwait and Bahrain on July 24.
Treasury Yields Decline Across Maturities on July 24
According to Yonhap Infomax's intraday interest rate screen (screen number 6532), the 10-year US Treasury yield stood at 4.684% as of 9:03 AM US Eastern Time on July 24, down 1.90 basis points from the 3 PM reference rate of the previous trading day. The policy-sensitive 2-year Treasury yield recorded 4.335%, declining 2.50 basis points over the same period. The 30-year Treasury yield formed at 5.160%, falling 1.20 basis points from the previous session. The yield spread between 10-year and 2-year bonds remained nearly unchanged at 34.9 basis points compared to the previous day's 34.3 basis points. Bond yields and prices move in opposite directions.
WTI Crude Falls 2.41% After Six-Day Rally
Oil prices declined for the first time in six trading sessions on July 24. West Texas Intermediate (WTI) crude for September delivery recorded $89.97 per barrel, down 2.41% from the previous session. While the Iran conflict shows no signs of abating, adjustment sentiment appears to have strengthened following the recent surge. WTI futures prices had jumped over 30% this month through the previous day.
Iran Attacks US Bases in Kuwait and Bahrain
Military clashes between the US and Iran have continued for nearly two weeks, with exchanges now occurring in US-allied Gulf states. On July 24, Iran's Islamic Revolutionary Guard Corps (IRGC) announced it had attacked US military bases located in Kuwait and Bahrain. Iranian media reported that explosions were also heard in Saudi Arabia.
Houthi Rebels Clarify Red Sea Blockade Scope
Pro-Iran Yemeni Houthi rebels issued a statement clarifying the extent of their Red Sea operations, partially easing tensions. The Houthi rebels stated that "some claims of a complete closure of the Bab el-Mandeb Strait are not true," adding that "the Yemeni military's announced position is limited to a maritime blockade targeting only the Saudi side." However, the Red Sea borders the entire western front of Saudi Arabia, meaning a blockade against Saudi Arabia differs little from a complete closure.
FAQ
What happened to US Treasury yields on July 24?
US Treasury yields declined across maturities on July 24 at 9:03 AM US Eastern Time, with the 10-year yield falling 1.90 basis points to 4.684%, the 2-year yield dropping 2.50 basis points to 4.335%, and the 30-year yield decreasing 1.20 basis points to 5.160%.
Why did oil prices fall after rallying for six days?
West Texas Intermediate crude for September delivery fell 2.41% to $89.97 per barrel on July 24, marking the first decline in six trading sessions. Adjustment sentiment strengthened after WTI futures had surged over 30% this month through the previous day.
What did Iran's Islamic Revolutionary Guard Corps announce on July 24?
Iran's Islamic Revolutionary Guard Corps announced on July 24 that it had attacked US military bases located in Kuwait and Bahrain, while Iranian media reported explosions were also heard in Saudi Arabia.
