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US Treasury yields hold higher after sale

Bond traders at CME Group
Getty Images

U.S. sovereign bond prices moved lower on Tuesday after the Treasury Department saw weak demand in a five-year note auction and as stock and oil prices rose.

The Treasury sold $35 billion in five-year notes at a high yield of 1.785 percent. The bid-to-cover ratio, an indicator of demand, was 2.32 versus a recent average of 2.47.

Indirect bidders, which include major central banks, were awarded 52.5 percent against a recent average of 59 percent. Direct bidders, which include domestic money managers, took 11 percent versus a recent average of 7 percent.

U.S. government debt prices, which move inversely to yields, had fallen ahead of the sale. Yields rose higher after the auction.

The yield on the benchmark 10-year Treasury note was at 2.3085 percent, with the yield on the 30-year Treasury bond trading at 3.0392 percent.

Two-year note yields hit their highest level since April 2010 and were last trading at 1.0830 percent.

Monday saw the Treasury Department auction $26 billion in two-year notes at a high-yield of 1.056 percent. The bid-to-cover ratio, an indicator of demand, was 2.8 versus a recent average of 3.29.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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In oil markets, Brent crude traded at around $37.89 a barrel on Tuesday, 3.5 percent higher, while U.S. crude was at around $37.92 a barrel, up 3 percent.

On the data front, U.S. hope prices rose 5.2 percent in October, according to the S&P/Case-Shiller National Home Price Index.

Consumer confidence for December came in at 96.5, above a Reuters estimate of 93.8.

— CNBC's Patti Domm and Katy Barnato contributed to this report