Long-term U.S. government debt prices turned negative on Tuesday after a key reading on the housing market showed home prices rising.
Home prices continued to increase in January despite slowing growth and seasonal weakness, a closely watched index showed on Tuesday.
The yield on the 30-year Treasury note ticked higher at 2.555 percent, up from its closing yield of 2.55 percent Monday.
Elsewhere, yields were little changed on Tuesday, but were still lower than Friday's close following dovish comments from Federal Reserve Chair Janet Yellen at a San Francisco Fed conference, where she said that seeing a rise in core inflation was not essential to hiking rates.
Treasurys
The U.S. 10-year Treasury note yield fell to 1.945 percent after closing at 1.961 percent on Monday, following a rally on Wall Street.
The latest consumer confidence reading will be released by the Conference Board at 10:00 a.m. ET and is expected to show a modest up-tick in sentiment in March.
While the indicator seems bound to remain below January's post-crisis high, it should be consistent with a decent spending mood among U.S. consumers.
Tuesday marks the end of the first quarter, meaning fund manager portfolio adjustments could have an effect on stocks and bonds.
Oil futures extended losses Tuesday, as Iran and six world powers negotiated over a deal that could ease sanctions and allow more Iranian crude onto world markets.
Brent crude oil was almost $1 lower at $55.34 a barrel, while U.S. crude was down over 90 cents at $47.75 a barrel in mid-morning trade in London.
Investors are preparing for a shorter week due to the Easter vacation; stock and bond markets are closed for Good Friday this week, nonfarm payrolls will still be published Friday.