U.S. Treasury yields were lower on Tuesday even after Federal Reserve Chair Jerome Powell said he is in no hurry to push for interest rate cuts as the impact of tariffs plays out. Traders also kept an eye on a fragile ceasefire between Iran and Israel.

The 10-year Treasury yield was down 3.1 basis points at 4.291%, the 2-year yield lost 1.4 basis points to 3.815%. The 30-year shed 2.7 basis points to trade at 4.832%. One basis point is equal to 0.01%, and bond yields and prices move in opposite directions.

Yields initially rose after Powell repeated his expectation that policymakers are "well positioned to wait" before approving adjustments to the Fed's policy rate.

"The FOMC's obligation is to keep longer-term inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem," Powell said in remarks that underscored the Fed's commitment to keeping prices in check.

"The markets are telling Powell that he will be lowering rates much more quickly than he portrayed today," wrote Andrew Brenner of NatAlliance.

Yields had risen earlier after U.S. President Donald Trump said that a ceasefire was in effect, soon after Iranian state-linked media announced Tehran had fired its "last round" of missiles at Israel.

"THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!" Trump said in a post on Truth Social.

However, both countries appeared to have violated the truce by firing nonlethal rockets. Since then, the ceasefire appears to have taken hold.

— CNBC's Ruxandra Iordache and Jeff Cox contributed to this report.