Treasury yields edge lower as investors map geopolitical risks

U.S. Treasury yields were higher across the curve on Tuesday as investors mapped escalating tensions across the Middle East and reports of mediation efforts to put a stop to ongoing hostilities.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 3 basis points at 4.63%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, gained more than 4 basis points to 4.264%. The longer-dated 30-year Treasury bond yield was edged up less than 2 basis points to 5.133%.

One basis point is equal to 0.01%, and yields and prices move inversely to each other.

BMO Capital Markets said the Treasury market has remained relatively steady despite the latest escalation in the Middle East, as reports that mediators have tabled fresh ceasefire proposals tempered oil prices on Tuesday.