U.S. government debt prices were lower on Tuesday as investors digested a batch of economic data and a Treasury Department sale.
The department auctioned $26 billion in two-year notes at a high yield of 1.21 percent on Tuesday. The bid-to-cover ratio, an indicator of demand, was 2.68, above a recent average of 2.66.
Indirect bidders, which include major central banks, were awarded 48.8 percent, above a 10-auction average of 41 percent. Direct bidders, which includes domestic money managers, bought 9.3 percent, well be low an average of 16 percent.
The two-year note yield traded around 1.19 percent following the sale.