U.S. sovereign bond prices were higher Tuesday as expectations of a June rate hike faded further and as investors digested a Treasury Department sale.
The department auctioned $24 billion in three-year notes at a high yield of 0.93 percent Tuesday. The bid-to-cover ratio, an indicator of demand, was 2.79.
Indirect bidders, which include major central banks, were awarded 48.1 percent, below a 10-auction average of 51 percent. Direct bidders, which includes domestic money managers, bought 11.1 percent, slightly under a 10-auction average of 12 percent.
The yield on three-year notes, which moves inversely to its price, last traded at 0.9292 percent.
The yield on the 10-year Treasury note was lower at 1.7177 percent, while the yield on the 30-year Treasury bond held at 2.5377 percent. Two-year note yields dipped slightly, last trading at 0.7793 percent.