U.S. Treasurys pared earlier gains on Tuesday as fresh signs of easing geopolitical tensions in Ukraine and stronger-than-expected housing data sapped demand for safe-haven assets like government bonds.
Benchmark 10-year Treasury notes were 1/32 lower in price with the yield at 2.40 percent, off an earlier low of 2.36 percent. Thirty-year bonds moved lower too with the yield at 3.22 percent, off a 3.17 percent session low.
Russian President Vladimir Putin plans to meet with his Ukrainian counterpart Petro Poroshenko on August 26 in Minsk, Belarus, the Kremlin said Tuesday, boosting hopes that a solution between the two countries may be near.
The two leaders have not met since early June as fighting between Ukrainian troops and pro-Russian rebels raged on in east Ukraine.
Earlier, stronger-than-expected housing data but a modest increase in consumer inflation data for July, pushing the levels up from last week's 14 month lows.
"Inflation data is neither here nor there, but the housing data is a little bit more bearish for Treasurys. I think we'll be relatively rangebound," said Thomas Simons, money market economist at Jefferies LLC in New York.