U.S. government debt prices were higher on Tuesday morning as investors focused on the likelihood of a March interest rate hike.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.595 percent, while the yield on the 30-year Treasury bond was also lower at 3.171 percent.
Elsewhere, the Federal Open Market Committee begins its two-day meeting as the market anticipated the Fed to raise interest rates for just the third time in 10 years.
Treasurys
On the data front, the Labor Department said on Tuesday its producer price index for final demand increased 0.3 percent last month after rising 0.6 percent in January.
In oil markets, Brent crude traded at around $50.91 a barrel on Tuesday morning, down 51 cents percent, while U.S. crude was around $47.70 a barrel.
Investors eyed economic data on Tuesday which could provide further evidence as to whether a supply overhang persisted in the global market.