The yield on the 10-year US Treasury bond reached a two-week high as the ceasefire agreement in the Middle East faces a test.

The yield on U.S. government bonds is rising, with the 10-year Treasury yield hitting a two-week high during Asian trading hours. Amid escalating tensions between Israel and Iran, the fragile ceasefire agreement in the Middle East is once again being put to the test, leading to higher yields as oil prices rise. Filip Andersson of Danske Bank stated in a report that strong U.S. job reports from the previous Friday weakened risk appetite, a theme that continued in Asian markets overnight. The head of fixed income and foreign exchange research said that rising oil prices could push yields higher this morning. According to data from Tradeweb, the yield on 10-year U.S. government bonds has increased by 3.4 basis points to 4.569%, after reaching a two-week high of 4.580% earlier in the trading session.