Treasury yields rise as Iran ceasefire optimism fades

Treasury yields rose on Thursday as investors digested mixed messages around the state of negotiations between the U.S. and Iran.

The benchmark 10-year Treasury yield was more than 8 basis points higher at 4.416%. The 30-year Treasury bond yield was up by more than 5 basis points at 4.949%. The 2-year Treasury note yield was higher by more than 9 basis points, reaching 3.973%.

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

Global markets have been struggling to decipher contradictory statements from Washington and Tehran over the last 48 hours regarding the status of peace talks. The U.S. says negotiations over a proposed peace plan have been taking place, while Iran denies any direct interaction with Washington on the matter.

Iranian Foreign Minister Abbas Araghchi reportedly told state media on Wednesday that officials were reviewing an American proposal to end the war, but said Tehran had no intention of having talks with the U.S.

He added that an exchange of messages between the two countries through mediators “does not mean negotiations with the U.S.,” Reuters reported.

Iran state media also reported Wednesday that the Islamic Republic would reject a U.S. ceasefire offer, instead countering with its five-point list that would give Tehran control over the Strait of Hormuz.

Taking to Truth Social on Thursday, President Donald Trump said that Iran “better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!”

On the economic front, initial jobless claims for the week ended March 21 rose 5,000 from the previous weekly period to reach 210,000, which was in line with the Dow Jones forecast. However, continuing claims fell to their lowest level since May 25, 2024.

— CNBC’s Holly Ellyatt also contributed to this report.