NEW YORK- US Treasury yields fell on Tuesday as Iran launched missiles at Israel which boosted demand for safe-haven assets, but were off earlier lows on hopes any further escalation was not imminent.

Iran fired a salvo of ballistic missiles at Israel on Tuesday in retaliation for Israel’s campaign against Tehran’s Hezbollah allies in Lebanon, while Israel vowed a “powerful response.”

A warning by the US that the launch was likely pushed yields to session lows, with the 10-year dropping to 3.696 percent, its lowest since Sept. 18, and the 2-year falling to 3.572 percent.

US National Security Adviser Jake Sullivan said the strike appeared to have been defeated and Iran and its proxies will continue to be monitored for further threats.

The yield on the benchmark US 10-year Treasury note was down 6.3 basis points to 3.739 percent.

“It was a reaction to see what the response was going to be based on the information, based on some of the headline news, everybody was on kind of standby, and then once you started to see things play out the market was able to settle down,” said Jim Barnes, director of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania.