U.S. government debt yields traded around multiyear highs Wednesday after President Donald Trump announced that the United States would pull out of the Iran nuclear deal and the latest Treasury auction drew muted demand from Wall Street.
The yield on the two-year Treasury note hit 2.53 percent, its highest level since Sept. 8, 2008, while the yield on the 10-year Treasury note was higher at 3 percent, a key psychological level the benchmark for the first time since late April.
The yield on the 30-year Treasury bond rose to 3.152 percent. Bond yields move inversely to prices.
Markets have been on edge since President Trump announced on Tuesday that the U.S. would be walking away from the Iran nuclear deal and that sanctions on the Middle Eastern country would be reinstated.
While some countries in the Middle East commended the move, U.S. allies in Europe did not. President Hassan Rouhani of Iran said that his country would continue to commit to the nuclear deal, despite Trump's decision to withdraw, according to Reuters.
Oil prices rallied on the back of the news, with U.S. crude and Brent rising more than 2.5 percent on Wednesday, prior to the opening bell on Wall Street.