U.S. Treasury prices fell on Tuesday after consumer prices recorded their largest increase in more than a year, which may give the Federal Reserve more confidence in adopting a hawkish tone when it meets this week.
Benchmark 10-year notes fell 13/32 in price to yield 2.64 percent, up from 2.60 percent late on Monday.
Thirty-year bonds dropped 23/32 in price to yield 3.44 percent, up from 3.40 percent.
Two-year note yields, which are highly sensitive to Fed policy, were flat at 0.47 percent, the highest since April 4. Three-year notes, meanwhile, dropped 4/32 in price to yield 0.99 percent, the highest since May 2011.
The Labor Department said on Tuesday its consumer price index increased 0.4 percent last month, with food prices posting their biggest rise since August 2011.
Low inflation has posed a problem for the Fed's ability to raise interest rates as economic growth continues. A rise in inflation is likely to be seen as positive, even though the main inflation gauge watched by the Fed continues to run below the U.S. central bank's 2 percent target.
"It was a much stronger print than the market was expecting and many are thinking that that may lead to a more hawkish tone tomorrow,'' said Michael Pond, head of global inflation-linked research at Barclays in New York.
"The Fed was patient with low inflation because they thought it was influenced by transient factors, and the recent data proves they are right. They are abating,'' Pond said.
Investors are focused on the Federal Reserve's monetary policy statement on Wednesday, when the U.S. central bank is expected to announce it will continue paring its bond purchase program and cut its growth projections.