U.S. Treasury yields fell on Tuesday after President Donald Trump departed early from the Group of Seven summit, signaling an escalation in Israel-Iran tensions.

The yield on the benchmark 10-year Treasury was 3 basis points lower at 4.42%. The 2-year Treasury yield slipped 2.6 basis points to 3.943%.

One basis point is equivalent to 0.01%. Bond yields and prices have an inverse relationship.

Trump noted that his early exit from the summit was due to "much bigger" things than negotiating a ceasefire between Tel Aviv and Tehran, while calling on Iranians to "immediately evacuate Tehran."

"Indeed, there have been no signs of de-escalation in the aerial war, with reports of explosions against in Tehran overnight, while Iran launched more missiles into Israel," Deutsche Bank wrote in a note published Tuesday.

The Group of Seven summit concludes in Canada on Tuesday, with no joint communique expected at the end of the gathering.

"There are still big questions as to whether Israel would be receptive to a ceasefire, given that it is seeking to destroy Iran's nuclear program," said Deutsche Bank's strategists.

The conflict between Israel and Iran has yet to show any concrete signs of abating after Israel conducted military strikes on Iran last Friday. Both regional powers issued new evacuation orders as missiles continue to be launched at each other for a fourth straight day.