U.S. bonds gained on Tuesday as rising tensions in Ukraine sparked a safety bid for U.S. bonds, and after a weak manufacturing survey for New York state pointed to sluggish economic momentum.
Russia declared Ukraine on the brink of civil war on Tuesday as Kiev said an "anti-terrorist operation'' against pro-Moscow separatists was under way, with troops and armored personnel carriers seen near a flashpoint eastern town.
Concerns over escalating conflict added to bond purchases, after a gauge of manufacturing in New York state earlier grew at a slower rate than the previous month, and below expectations in April.
``It added to the Treasuries rally in the long-end, emerging markets overall are getting hit harder,'' said Michael Chang, an interest rate strategist at Credit Suisse in New York.
Benchmark 10-year notes were up 7/32 in price to yield 2.63 percent, down from 2.66 percent earlier on Tuesday. Thirty-year bonds gained 16/32 in price to yield 3.46 percent, down from 3.50 percent earlier.