U.S. Treasurys prices higher on Tuesday on uncertainty that the Federal Reserve will hike rates in September, while reduced concerns over Greece stymied demand for U.S. government debt.
A smaller-than-usual amount U.S. economic data led traders to focus more attention on the Fed, which will hold a meeting on monetary policy next week.
While analysts say the Fed is inching toward a rate hike since Fed Chair Janet Yellen repeated the view last week that the central bank would likely raise rates this year, uncertainty about next week's statement and the potential for a September rate increase kept Treasurys prices muted.
"We think the odds are that the Fed will start tightening in September, but it's a close call," said Stan Shipley, bond strategist at Evercore ISI in New York. He said U.S. economic data on the housing market would be closely watched later this week.