TREASURIES-US yields fall after Fed's Bowman signals potential rate cut as soon as July

NEW YORK, June 23 (Reuters) - Yields on U.S. Treasuries fell on Monday morning after Federal Reserve vice-chair Michelle Bowman said the first interest rate this year could come as soon as July.

Yields were slightly lower on the session after the U.S. bombed Iran's nuclear sites over the weekend, raising geopolitical tensions, and extended their fall after Bowman's comments.

Bowman, recently tapped by President Donald Trump to be the central bank's top bank overseer, said Monday she is growing more concerned with risks to the job market than with the potential inflationary effects of tariffs.

U.S. 10-year Treasury yields fell after Bowman's comments and were last down 6.1 basis points to 4.314%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell 6.4 basis points to 3.844%.

Markets are expecting the first interest rate cuts to come later in the year, potentially beginning in September. The CME's FedWatch tool still showed mid-morning that markets saw a 77% chance of rates being held steady at the July meeting. (Reporting by Tatiana Bautzer, editing by Deepa Babington)