Treasury yields rise as oil price gyrates



U.S. government debt prices fell on Tuesday as investors kept an eye on wild fluctuations in the oil markets.

The yield (which has an inverse relationship to the price) on the benchmark 10-year Treasury note sat higher, at 1.788 percent, while the yield on the 30-year Treasury bond was also higher, at 2.658 percent.

Traders in the U.S. are back at work Tuesday after Presidents Day, with the oil price fluctuating during the session.

Overnight, oil prices rallied on hopes of a production cut with the world's biggest oil producers — including Saudi Arabia and several key OPEC members — meeting in Doha. However, the commodity erased those gains as traders were left disappointed at a announcement that the producers had frozen output at January levels.

European stocks finished broadly lower on Tuesday, while U.S. stocks rose slightly. The risk-on sentiment helped outflows from so-called safe havens like U.S. Treasurys.

On Tuesday, market watchers will be looking to central bankers for more hints on future monetary policy after steep losses for risk assets this year, with Boston Fed President Eric Rosengren set to speak Tuesday evening.

Across the Atlantic on Monday, Mario Draghi, the president of the European Central Bank, said that the bank is "ready to do its part" to make "the euro area more resilient," hinting at further stimulus measures to come.

On the data front, the Empire State survey came in negative, with a -16.64 index reading. Meanwhile, the NAHB survey showed a 3 percent drop in homebuilder sentiment. TIC (Treasury International Capital) data are also due at 4 p.m.

CNBC's Patti Domm and Arjun Kharpal contributed to this report.