×

Treasury Dept auctions $26 billion of 2-year notes at a high yield of 0.855%

U.S. government debt prices were mixed on Tuesday as investors were also preparing for more remarks out of leading central banks, while digesting weaker-than-expected consumer data and a sale of two-year notes.

The Treasury Department auctioned $26 billion in two-year notes at a high yield of 0.855 percent on Tuesday.

The bid-to-cover ratio, an indicator of demand, was 2.53, below a recent average of 2.81.

Indirect bidders, which include major central banks, were awarded 33.7 percent, well below a recent average of 45 percent. Direct bidders, which include domestic money managers, bought 10.1 percent, also well below a recent average of 18 percent.

The yield on the benchmark 10-year Treasury note sat lower at around 1.757 percent, while the yield on the 30-year Treasury bond was also down at 2.4987 percent. Two-year notes, however, rose to yield 0.8564 percent. Bond yields move inversely to prices.

Symbol
Yield
 
Change
%Change
US 3-MO
---
US 1-YR
---
US 2-YR
---
US 5-YR
---
US 10-YR
---
US 30-YR
---

Central banks from across the globe will set the stage for bond markets on Tuesday, with speeches expected to be of key interest. In the U.S., Atlanta Federal Reserve President, Dennis Lockhart is set to speak at the Opportunity Finance Network Conference in Atlanta, scheduled for the early afternoon.

Meanwhile in Europe, Bank of England Governor Mark Carney said he would not be swayed by political issues while deciding whether to extend his stay at the central bank beyond his scheduled departure in 2018. Carney also said that he did not think Prime Minister Theresa May was proposing a change in the way monetary policy is set when, earlier this month, she criticized the "bad side effects" of low interest rates and the BoE's QE program.

In Germany, European Central Bank President, Mario Draghi is expected to deliver comments at a lecture in Berlin on "Stability, Equity and Monetary Policy."

In economic news, consumer confidence hit 98.6, with economists polled by Reuters expecting confidence to hit 101.5. Meanwhile, U.S. home prices rose slightly in August from July, with the S&P CoreLogic Case-Shiller 20-City Composite index gaining 5.1 percent year over year.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

Meanwhile crude slipped on Tuesday, as comments from OPEC members regarding chances of an output cut kept the market on edge, Reuters reported. U.S. West Texas Intermediate crude futures last stood around $50.12 per barrel, while Brenthovered around $51.04.

Follow CNBC International on Twitter and Facebook.

— Reuters contributed to this report.