NEW YORK, June 25 (Reuters) - Yields on longer-dated

U.S. Treasuries were slightly up early on Wednesday as oil

prices rose and the truce in the Middle East increased

investors' willingness to take risks.

The yield on the benchmark U.S. 10-year Treasury note

rose 3.7 basis points to 4.33%, and 30-year bond

yields rose 4 basis points to 4.871%.

Oil prices rose on Wednesday after sharp declines over the

last few sessions as investors assessed the stability of the

cease fire between Israel and Iran.

Investors followed Fed's chair Jerome Powell testimony on

Congress for potential signs of timing for the next interest

rate cuts, after Fed officials appointed by president Donald

Trump, such as Michelle Bowman, mentioned the possibility of

cuts beginning as soon as July. "Markets are trying to assess

the probability of shorter term rate cuts", said Gennadiy

Goldberg, head of US rates strategy at TD Securities in New

York.

Trump said on Wednesday morning during a NATO meeting in the

Netherlands he is already considering candidates to replace

Powell next year when his term ends.

On Wednesday, Powell repeated he's open to the possibility that

tariffs may have lower or higher impact on inflation than

anticipated.

So far, markets are convinced the first interest rate cut

will come in September, according to CME's FedWatch tool, that

shows 20% chance of a 25 basis point cut in July and 85%

probability of a 25 or 50 basis point cut in September.

The two-year U.S. Treasury yield, which

typically moves in step with interest rate expectations, was

flat at 3.803%.