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US bonds slide ahead of nonfarms; Fed speakers in focus

U.S. Markets Overview: Treasurys chart

U.S. sovereign bond prices were lower as investors focused on remarks from U.S. Federal Reserve officials on Tuesday and looked ahead to key jobs data due at the end of the week.

Treasury yields hit nearly two-week highs across the board as the yield on the benchmark 10-year Treasury note, which moves inversely to its price, hit a high of 1.6856 percent, while the yield on the 30-year Treasury bond hit a high of 2.4062 percent. The 10-year Treasury note last yielded about 1.6682 percent, while the yield on the 30-year Treasury bond last sat near 2.3923 percent.

The yields on the 2-year and 5-year Treasury notes also hit highs of 0.834 percent and 1.229 percent, respectively.

The yield on the German 10-year bund moved sharply higher to a session high, after Bloomberg reported that the European Central Bank may wind down its bond buying before the end of quantitative easing.

The ECB said in a statement, "The Governing Council has not discussed these topics, as President Mario Draghi said at the last press conference and during his recent testimony at the European Parliament."

Source: FactSet

The U.S. Federal Reserve and its rate hiking schedule is back in focus for investors. Friday's scheduled release of September employment is the key data point for the week. Ahead of that, no major data are scheduled for Tuesday and traders will eye two U.S. Federal Reserve speakers for indications on the likelihood of a December interest rate hike.

Richmond Fed President Jeffrey Lacker said there was a strong case to raise interest rates significantly and keep inflation under control. "Pre-emptive increases in the federal funds rate are likely to play a critical role in maintaining the stability of inflation," Lacker, a non-voting member of the Fed's policymaking committee, said in a statement.

Chicago Fed President Charles Evans is set to speak at 7:40 p.m. ET, on monetary policy and the economy.

—CNBC's Arjun Kharpal and Christopher Hayes contributed to this report.