Treasury Dept auctions $26 billion of 2-year notes at a high yield of 1.28%

U.S. government debt prices ticked lower on Tuesday, as investors looked out for a number of bond auctions and the release of economic data.

The yield on the benchmark 10-year Treasury note sat higher at around 2.563 percent in early trade, while the yield on the 30-year Treasury bond was also higher at 3.142 percent. Bond yields move inversely to prices.


After a long holiday weekend, investors are expected to keep a close eye on a number of bond auctions, set to take place on Tuesday.

The Treasury Department auctioned $26 billion in 2-year notes at a high yield of 1.28 percent.

The bid-to-cover ratio, an indicator of demand, was 2.44, the weakest since Christmas 2008. Indirect bidders, which include major central banks, were awarded 32.7 percent, compared to a recent average of 43, making it the weakest since July. Direct bidders, which includes domestic money managers, bought 9.3 percent, compared with a recent average of 16, making it the weakest since January of 2015.

The U.S. Treasury is set to auction $34 billion in 13-week bills, $28 billion in 26-week bills. It also auctioned $50 billion in four-week bills.

When it comes to U.S. data, the S&P Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was also up 5.6 percent in October from the previous year, extending a new high from the previous month.

The Consumer Confidence Index hit 113.7 in December, The Conference Board said on Tuesday. Economists polled by Reuters expected the Consumer Confidence Index to hit 109.0 for the month.

In oil markets, WTI and Brent crude futures eked out some gains early on Tuesday, hovering around $53.73 per barrel and $55.98 respectively.

U.S. bond markets were closed on Monday in observance of the Christmas holiday.

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- Reuters contributed to this report.