Treasury yields rise, as oil resumes climb on mounting U.S.-Iran tensions

U.S. Treasury yields rose Thursday, after oil prices resumed their climb on mounting tensions between the United States and Iran.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose over 4 basis points to 4.586%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, rose 4 basis points to 4.166%. The longer-dated 30-year Treasury bond yield also added 4 basis points to 5.123%.

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

Oil prices jumped Thursday, as traders monitored an escalation in geopolitical tensions after the U.S. struck Iran's coastal defences on Wednesday. Brent crude futures jumped 1% to above $85 a barrel. U.S. West Texas Intermediate futures climbed more than 1% to top $80 a barrel.

The latest raft of economic data continued to show the U.S. consumer holding up in the face of higher pricing pressures. Jobless claims for the week ending July 11 came in at a seasonally adjusted 208,000, lower than the 218,000 expected. Retail sales came in line with expectations, up 0.2%.

Bond markets were given a disinflationary boost on Wednesday after the produce price index dropped 0.3% in June, a softer reading than anticipated. Economists polled by Dow Jones expected the measure to be unchanged on the month.

— CNBC's Jeff Cox and Sean Conlon also contributed to this report.