As investors assess the economic and geopolitical landscape, treasury yields increase.

On Wednesday, treasury yields were last higher, as investors evaluated the condition of the U.S. economy and assessed recent advancements in the Middle East.

At 6:32 a.m. ET, the yield on the 30-year Treasury bond was up by 2 basis points to 3.766%, while the yield on the 10-year Treasury bond was only 0.1 basis point higher at 3.625%.

An inverse relationship exists between yields and prices, with one basis point equivalent to 0.01%.

Investors evaluated the latest economic data to evaluate the U.S. economy's condition. The ISM's manufacturing PMI for September was 47.2, which was slightly below the 47.5 forecast by Dow Jones.

The ADP's employment report on Wednesday will be closely watched by investors, as it precedes the crucial September jobs report from the U.S. Labor Department's statistics bureau on Friday. The information could significantly influence the course of Federal Reserve monetary policy, particularly with regards to interest rates.

If economic data remains consistent, the Fed may cut interest rates by two more 25 basis point increments this year, according to Fed Chairman Jerome Powell. However, Powell emphasized that the recent 50 basis point rate cut should not be interpreted as a sign that the central bank will continue cutting rates aggressively.

As tensions in the Middle East escalated, investors continued to weigh the potential impact on global markets and trading. On Tuesday, Iran launched a ballistic missile attack on Israel, following Israel's deployment of ground forces into south Lebanon.

As investors searched for safety amidst regional developments, treasury yields retreated on Tuesday.