U.S. government debt prices were lower on Tuesday, as investors prepared themselves for the next set of moves in the oil market.
U.S. Treasury yields hit their highest levels since June on Tuesday morning. The yield on the five-year note hit a high of 1.312 percent, while the yield on the 10-year note hit a high of 1.781 percent. Those were the highest levels for those Treasury yields since June 3. The 30-year Treasury bond yielded as much as 2.516 percent, its highest level since June 24.
The yield on the benchmark 10-year Treasury note last sat higher at around 1.7622 percent, while the yield on the 30-year Treasury bond was also higher at 2.4976 percent. Bond yields move inversely to prices.
Treasurys
Oil prices are set to be one of the big market focuses Tuesday, after prices rose as much as 3 percent on Monday, helping both U.S. and European markets close in positive territory.
Oil rose after news emerged that both Russia and Saudi Arabia said a deal between leading OPEC and non-OPEC producers was possible, when it came to curbing the current oil output, Reuters reported.
However, prices saw renewed pressure on Tuesday, as doubts emerged over whether a production cut would be enough. U.S. WTI settled down 56 cents or 1.1 percent, at $50.79 a barrel.
Aside from oil, the U.S. Federal Reserve is expected to be on the back of investors' minds, as they deliberate over when the U.S. central bank is planning on raising interest rates, following a lower-than-expected jobs number for September.
One speech investors will be watching will be that of Minneapolis Fed President Neel Kashkari's, who is due to take part in a Q&A session at Bethel University on Tuesday morning. Kashkari is expected to cover the topics of open market operations, TARP, among other topics.
Overnight, Chicago Fed President Charles Evans said the central bank should engineer monetary policy to spur inflation to rise above its 2 percent target because the costs of doing so are less than in past decades.
On the data front, the National Federation of Independent Business' (NFIB) latest survey showed confidence was weighed by inventory worries.
U.S. bond markets were closed on Monday, due to Columbus Day.
—CNBC's Christopher Hayes, and Reuters contributed to this report.