Treasuries-US yields climb after attacks between U.S. and Iran

Yields climbed further after Federal Reserve Governor Christopher Waller said the central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the 2% target.

Several Fed officials have in recent weeks flagged concerns about inflation pressures, including during the last policy meeting in June, according to the minutes.

A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at a positive 34.7 basis points.

Expectations for a hike of at least 25 basis points at the Fed's meeting later this month stand at 41.2%, up from the 34.2% in the prior session. For the September meeting, markets are pricing in a 76% chance of a hike, up from 69.6%, according to CME FedWatch.