U.S. Treasury Yields Rise as U.S. Strikes on Iran Hit Civilian Infrastructure

U.S. Treasury yields edged higher on Monday amid escalating tensions in the Middle East, Cnbc reported. The yield on the 10-year note rose over 1 basis point to 4.558%.078%, while the 2-year note yield stayed broadly flat at 4.181%.

U.S. Central Command completed its ninth consecutive evening of strikes against Iran at 10 p.m. ET on Sunday. The three-hour operation targeted military command centers, air defense and coastal surveillance sites, maritime capabilities, and missile and drone launch sites.

The strikes were intended to reduce Tehran's ability to attack commercial vessels and civilian mariners in the Strait of Hormuz. U.S. strikes have widened in recent days, with Tehran reporting hits on civilian infrastructure including the Bonji desalination plant that supplies water to about 10,000 people.

Tehran has retaliated with attacks on targets in Bahrain, Saudi Arabia, and Jordan. The Kuwaiti army said Monday its air defense systems intercepted hostile drone attacks from Iran. Yields had eased last week after data releases showed the U.S.

Economy withstanding inflationary pressures tied to the conflict. Jobless claims for the week ending July 11 came in at a seasonally adjusted 208,000, below forecasts. Investors will monitor the S&P Global Flash U.S.

PMI report on Friday.