U.S. government debt prices were lower on Tuesday as investors parsed through key data reports on the first trading day of the year.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.46 percent, while the yield on the 30-year Treasury bond was also higher at 3.055 percent.
In U.S. economic news, the final read on December IHS Markit manufacturing PMI came in at 54.3, hitting a 21-month high. A number above 50 signals expansion, while a number below 50 shows contraction. The ISM manufacturing index read for December, meanwhile, came in at 54.7, above November's read of 53.2. and construction spending hit its highest level in more than 10 years in November.
Oil prices appeared to be boosted by increasing optimism among investors that a deal between OPEC and non-OPEC members to cut production would drain global oversupply.