U.S. Treasury debt yields fell on Tuesday as a gloomier outlook on the European economy from the region's ruling body raised the appeal of higher-yielding U.S. government bonds.
A Reuters report that suggested some national central bankers sought to challenge Mario Draghi's leadership style raised doubts whether the European Central Bank could step up efforts to stimulate the region's businesses and borrowing.
A surprise widening of the U.S. trade deficit in September raised the likelihood that the initially reported 3.5 percent pace of U.S. growth in the third quarter would be downgraded, reviving some bets the Federal Reserve might not raise benchmark U.S. interest rates in 2015.
The Commerce Department said the trade deficit grew 7.6 percent to $43.03 billion, compared with a forecast of $40.00 billion among analysts polled by Reuters.
"The news from Europe was somewhat negative. On the U.S. side, recent data have been on the weak side too," said Stan Shipley, bond strategist at Evercore ISI in New York.