US Treasury bonds closed near their session highs on Wednesday, with the yield on the 10-year note dropping over 9 basis points during the day to around 4.40%. The movement in bond prices was driven by falling oil prices and declines in semiconductor stocks ahead of earnings from Micron Technology. Despite tepid demand at an auction for 5-year US Treasury notes, bonds maintained their gains through the afternoon.

Shortly after 3 p.m. New York time, yields across the Treasury curve were down between 6 and 10 basis points, with longer-dated yields leading the decline. This pushed the 2s10s spread down by nearly 4 basis points on the day.

The yield on the 30-year bond fell close to 9 basis points, on track for its largest single-day drop since last October.

WTI crude oil futures settled 3.9% lower, hitting their lowest level since February 27th. The resumption of exports through the Strait of Hormuz due to peace talks has further eroded the remaining price premium linked to the Iran conflict.

Falling stock prices provided support for Treasuries; in late trading, the S&P 500 was down 0.3% and the Nasdaq 100 fell nearly 1%, with chipmakers underperforming ahead of Micron's earnings report.

The 5-year Treasury note auction stopped at a yield less than 1 basis point above its pre-auction trading level. Primary dealers were awarded 12.9%, slightly more than the previous auction. The share awarded to indirect bidders fell to 61.6%, while the portion going to direct bidders rose to 25.5%.

As of 3:54 p.m. Eastern Time, the 2-year Treasury yield was at 4.1414%.

The 5-year Treasury yield was at 4.1775%.

The 10-year Treasury yield was at 4.4%.

The 30-year Treasury yield was at 4.8543%.

The yield spread between 2-year and 10-year notes was 25.65 basis points.

The yield spread between 5-year and 30-year notes was 67.32 basis points.