U.S. government debt prices were higher on Tuesday as investors digested a batch of economic data while concerns over President Donald Trump's policies remained.
Trump expressed concern about the value of the dollar, sending it lower and raising demand for safe haven U.S. bonds. In comments targeted to the pharmaceutical industry, Trump said currency devaluation by other countries had increased drugmakers' outsourcing their production and called on the companies to make more of their products in the United States.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.468 percent, while the yield on the 30-year Treasury bond was also lower at 3.072 percent.
On the data front, U.S. labor costs rose less than expected in the fourth quarter, pointing to low inflation even as anecdotal evidence suggests that wage growth is picking up as the labor market tightens.
In economic news, U.S. labor costs rose less than expected in the fourth quarter, pointing to low inflation even as anecdotal evidence suggests that wage growth is picking up as the labor market tightens.
The Employment Cost Index, the broadest measure of labor costs, increased 0.5 percent after rising 0.6 percent in the third quarter, the Labor Department said on Tuesday.
Meanwhile, the Chicago PMI adjusted January index reading came in at 50.3, below December's 53.9. Consumer confidence hit 111.8, below an estimate of 113.
Investors also kept an eye on the Federal Reserve as the U.S. central bank kicked off its first monetary policy meeting of the year. The Fed is scheduled to release its latest policy decision on Wednesday, with market participants largely expecting interest rates to remain unchanged.
—Reuters contributed to this report.