Treasury yields tick higher as investors digest U.S.-Iran ceasefire extension

U.S. Treasury yields moved higher on Wednesday after President Donald Trump announced an indefinite extension to the ceasefire with Iran.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 1 basis point at 4.305%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, increased more than 2 basis points to 3.80%. The longer-dated 30-year Treasury bond yield gained more than 1 basis point to 4.909%.

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

Trump on Tuesday extended the two-week U.S. ceasefire with Iran, saying the extension was warranted due to Tehran's government being "seriously fractured."

He said the ceasefire, which he earlier had said would end on Wednesday, would continue "until such time as" Iran's leaders and representatives submit a "unified proposal" to end the war with the U.S. and Israel.

The President's announcement came after reports that an expected trip by Vice President JD Vance to Pakistan for a second round of peace talks with Iranian officials had been put on hold.

Elsewhere, investors are digesting details from Federal Reserve chair nominee Kevin Warsh's confirmation hearing, which wrapped up on Tuesday.

Trump's nominee fielded questions on issues ranging from his views on monetary policy to his sprawling and complex personal finances to his ties to the Trump White House. He would become the wealthiest ever Fed chair if confirmed.

— CNBC's Holly Ellyatt, Kevin Breuninger and Jeff Cox also contributed to this report.