Prices for U.S. Treasurys dipped slightly on Tuesday, with investors seen unlikely to take large positions as they closed out their books on the last trading day of the year.
While yields on the benchmark 10-year note rose slightly, they remained below the 3 percent level, breached last week after the U.S. Federal Reserve earlier this month said it would slow its massive bond-buying program.
In addition, the bond market will close early on Tuesday ahead of the New Year's Day holiday on Wednesday. That holiday closure helped keep trade volumes thin on Tuesday.
"I'd be surprised to see anything major, but it is month end, quarter end," said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York.