U.S. sovereign bond prices were higher Tuesday, as a global rally in equities faded and risk-aversion rose.
In the U.S., the dollar index hit a four-month high after data showed U.S. housing starts rose by more than expected in June.
Global sentiment dipped Tuesday as oil markets edged lower. European stocks fell lower with the DAX down nearly 1 percent. German investor morale fell in July to the lowest level since November 2012 and much more than expected, a survey by German think tank ZEW showed on Tuesday.