10-year Treasury yield edges higher as investors monitor developments with Iran war

The 10-year Treasury yield ticked up on Wednesday as investors assessed the prospect of a resolution to the conflict in the Middle East.

The yield on the 10-year Treasury rose more than 2 basis points to 4.332%. The 2-year yield was up less than 2 basis points at 3.813%, while the 30-year Treasury yield climbed more than 2 basis points to 4.915%.

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

The moves come after President Donald Trump said Wednesday that Iran's president has asked the U.S. for a ceasefire but that the U.S. will only consider it when the Strait of Hormuz is "open, free, and clear."

Trump said Tuesday that American forces would leave Iran in "two or three weeks," adding that the U.S. would end its war "whether we have a deal or not."

That day saw tensions thaw, with The Wall Street Journal reporting that Trump told aides he was willing to end the war even if the Strait of Hormuz remains largely closed for now. Later, the New York Post reported that the President believes the Iran war will likely end soon and other nations will handle the Strait.

U.S. equities posted their best daily performance since May in the prior trading day as investors were buoyed by the developments. The blue-chip Dow added more than 1,100 points, or about 2.5%. The S&P 500 advanced 2.9%, while the Nasdaq Composite jumped 3.8%.

Elsewhere on Wednesday, payrolls processing firm ADP reported that employment growth in the private sector was better than expected in March, coming in at 62,000. Though that marked a decrease of 4,000 from February's upwardly revised figure, it was above the Dow Jones forecast for 39,000.

Retail sales in February were also better than expected, with the Commerce Department reporting that the headline sales number increased 0.6% in the period compared to the 0.5% gain that economists polled by Dow Jones had estimated.

"Following disappointing readings in December and January, February's retail sales report offered some reassurance," said Bret Kenwell, U.S. investment analyst at eToro. "If consumers continue to show resilience, it could help keep the economy on a constructive path."

— CNBC's Jeff Cox and Lisa Kailai Han also contributed to this report.