U.S. Treasury yields rise after Trump announces Israel-Iran ceasefire

U.S. Treasury yields rose Tuesday after U.S. President Donald Trump said that a ceasefire was in effect, soon after Iranian state-linked media announced Tehran had fired its “last round” of missiles at Israel.

“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!” Trump said in a post on Truth Social around 1:00 a.m. ET.

At 5:17 a.m. ET, the 10-year Treasury yield was up 3 basis points to 4.354%, the 2-year yield up a basis point to 3.842%, and the 30-year up over 4 basis points to 4.908%.

One basis point is equal to 0.01%, and bond yields and prices move in opposite directions.

The Israel Defense Forces confirmed that a ceasefire with Iran “came into effect this morning,” adding that it and its branches nevertheless remain on a “high level of alert and readiness to deliver a powerful response to any violations of the ceasefire.”

However, the Israel Defense Forces accused Iran of violating the ceasefire announced by Trump.

“In light of these severe violation of the ceasefire carried out by the Iranian regime, we will respond with force,” the IDF's Chief of the General Staff Eyal Zamir said, according to a statement on the Israeli military's Telegram channel.

Earlier, the IDF had reported it was working to intercept missiles launched by Iran toward Israel, with sirens blaring in the north of the Jewish state. CNBC could not independently verify developments on the ground.

Investors will also be closely monitoring Federal Reserve Chair Jerome Powell's semiannual testimony to Congress, which kicks off Tuesday morning. The central bank leader's testimony comes amid mounting pressure to begin cutting interest rates.