U.S. sovereign bond prices pared losses slightly Tuesday after the Treasury Department saw strong demand at a two-year note auction.
The yield on the 10-year Treasury note, which moves inversely to its price, rose to 1.854 percent, while the yield on the 30-year Treasury bond also climbed to 2.645 percent. Two-year yields ticked higher to 0.905 percent and hit their highest level since March 16.
Yields traded higher before the auction.
The Treasury Department on Tuesday sold $26 billion in two-year notes at a high yield of 0.92 percent. The bid-to-cover ratio, an indicator of demand, was 3, versus a recent average of 2.98.