U.S. bonds rose on Tuesday as traders focused on weakening U.S. consumer confidence and ignored stronger-than-expected data showing that U.S. home prices last year climbed the most since 2005.
The 30-year U.S. Treasury bond made the strongest gain.
Insurance companies and pension funds with extended investment horizons were likely buyers of the 30-year Treasurys, according to rate-strategist Boris Rjavinski at UBS in Stamford, Connecticut.
"Pensions and insurance companies have long-dated liabilities,'' Rjavinski said. ``The long bond is one of the best matches for them.''
After falling on Monday, the 30-year bond last rose 22/32 of a point in price to yield 3.660 percent, compared with 3.701 percent on Monday.
(Read more: The Fed is 'out of touch' with US economy: Polcari)
The benchmark 10-year U.S. Treasury note rose 12/32 in price to yield 2.699 percent, down from 2.745 percent on Monday. The session low was 2.7 percent.