U.S. sovereign bonds on Tuesday, with prices pressured by institutional investors readying for a big corporate bond deal by leading retailer Amazon.
Treasurys, which posted strong returns during November, also declined on Monday, when Medtronic Inc priced $17 billion of senior notes. That deal included a large portion of long-dated bonds.
"There is a lot of corporate issuance that's being hedged and that's applying a lot of pressure," said Sean Murphy, a Treasuries trader at Societe Generale in New York.
Hedging against expected exposure to corporate deals can at times pressure bonds, as investors conduct trades known as "rate-locking" that involves selling Treasuries to offset coming purchases of corporate bonds.