Treasury yields tick higher as U.S.-Iran standoff persists

Treasury yields ticked higher on Thursday as investors await updates on the resumption of U.S.-Iran peace talks and the latest Purchasing Managers’ Index print for April, due later in the day.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 2 basis points at 4.214%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was up more than 1 basis point at 3.8126%. The longer-dated 30-year Treasury bond yield was up more than 2 basis points at 4.9255%.

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

On Wednesday, Iran’s navy said that it had seized two container ships in the Strait of Hormuz, casting doubt upon an already fragile ceasefire.

Iran’s Revolutionary Guard Navy said in a statement that it had seized the ships for what it claimed were maritime violations and transferred them to Iranian shores, according to state media. CNBC could not independently verify the claim.

The announcement came after U.K. maritime authorities said two ships had been attacked in the Strait of Hormuz. Iranian media reported a third vessel had also been targeted by the country’s military.

The attacks come shortly after President Donald Trump said the U.S. would extend the ceasefire with Iran to allow for the Islamic Republic’s leaders to submit a “unified proposal” to end the war.

Later on Thursday, investors will be monitoring S&P Global Flash U.S. PMI data for April, which measures the economic health of American manufacturing and services sectors.

— CNBC’s Sam Meredith also contributed to this report.