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US Treasurys rise after ISM miss

U.S. government debt prices traded higher on Tuesday, with investors keeping an eye on the moves seen in the oil price, and digesting key economic data.

The yield on the benchmark 10-year Treasury note sat lower at 1.5476 percent, while the yield on the 30-year Treasury bond was also down at 2.2403 percent. Bond yields move inversely to prices.

The two-year note yield also fell to 0.746 percent.

U.S. Markets Overview: Treasurys chart

The oil market was closely watched during Tuesday's trade, with crude futures reacting on Monday and Tuesday to news that leading oil giants Russia and Saudi Arabia had agreed to cooperate on stabilizing the energy market.

U.S. crude settled 0.88 percent higher at $44.83 per barrel, while Brent showed signs of weakness, trading around $47.30.

On the data front, the ISM non-manufacturing PMI index for August came in at 51.4. Economists polled by Reuters expect the index to come in at 55.0, slightly below a July read of 55.5. A number above 50 indicates expansion, while one below 50 shows contraction.

The data were of key importance for the U.S. as investors pored over the figures for any indications into how well the U.S. economy is performing, and whether the Federal Reserve would raise rates in September. According to the CME Group's FedWatch tool, market expectations for a rate hike this month were 15 percent.

The jobs figure for August came in at 151,000 on Friday, below market expectations.

In other central bank news, the Reserve Bank of Australia chose to keep its cash rate unchanged at 1.5 percent on Tuesday.

U.S. financial markets were closed Monday for the U.S. Labor Day holiday.

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