Treasury yields mixed amid inflation data

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U.S. sovereign bonds yields were mixed Tuesday as traders looked for clues about a possible Federal Reserve interest rate hike.

Oil prices and inflation data were in focus. U.S. crude settled 2.6 percent lower at $40.67 per barrel.

The consumer price index for October rose 0.2 percent, in line with expectations.


Industrial production for October fell 0.2 percent. The NAHB homebuilders sentiment survey showed confidence dropped more than expected in November.

The Treasury International Capital flow data are disclosed at 4 p.m.

Stocks and bonds have confounded strategists, who had expected a flight-to-quality trade after coordinated terrorist attacks in Paris over the weekend left at least 129 dead and dozens injured.

Yields on 10-year Treasury notes slid to trade around 2.2658 percent on Tuesday, after closing at 2.273 percent on Monday.

Meanwhile, 30-year bond yields were also lower at 3.0531 percent after ending at 3.072 percent Monday.

Equities were given a lift Monday by a sharp jump in oil prices, which was supported by geopolitical concerns following weekend terror attacks in Paris.

The major U.S. averages also closed more than 1 percent higher, recovering some of their sharp declines last week.