U.S. Treasury debt prices inched lower on Tuesday as investors in global markets throttled down fears that Federal Reserve policymakers meeting in Washington will soon undo America's ultra loose monetary policy.
After surrendering bigger price gains, driven in part by an independence referendum on Thursday in Scotland, yields on benchmark 10-year Treasury notes late on Tuesday were little changed at 2.59 percent. Prices were down 1/32.
Yields on 30-year Treasury bonds touched a low of 3.308 percent before rising as price gains reversed. The long bond was last off 9/32 in price and was yielding 3.36 percent.
Prices on shorter maturities were up as traders speculated about a two-day Fed policymaking session that ends on Wednesday with a policy statement and a potentially market-moving news conference by Fed Chair Janet Yellen.
"The market has pretty much determined that the message tomorrow is going to be continue to maintain (existing policies) for 'a considerable period,"' said Charles Comiskey, head of Treasury trading at Scotia Bank in New York. "That's why you are seeing a steepening of the curve and buying in the two-year, three-year and five-year notes."