US Treasurys rise as dollar falls; UK bonds slip after inflation data

US 10-YR
US 30-YR

U.S. government debt prices rose on Tuesday as the dollar fell against most major currencies.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.43 percent, while the yield on the 30-year Treasury bond was also lower at 3.046 percent.

The dollar pulled back 0.67 percent against a basket of currencies, falling to 99.75.

On the data front, fourth-quarter current account figures showed the deficit fell, hitting its lowest level in more than a year, as an increase in the primary income surplus offset a
soybean-driven drop in exports.

Meanwhile, the Philadelphia Federal Reserve nonmanufacturing index slipped in March, but still showed overall business growth.

Overseas, UK government bond yields spiked after higher-than-expected inflation data. Consumer price inflation hit 2.3 percent last month, shooting past the Bank of England's 2 percent target and its strongest in nearly three-and-a-half years.

"Look, (it's) a single data point. You never overreact to a single data point," said Bank of England Governor Mark Carney.

The UK has been in focus recently after Prime Minister Theresa May's office announced the Brexit process would formally begin March 29.

"So far we have only seen a trailer of the Brexit film and the actual film will only be in cinemas after the Article 50 is triggered," said Naeem Aslam, chief market analyst at Think Markets in London. "It is only then, that we will start to see the concussions on the UK's economy, consumer health, consumer confidence, housing market and the UK's job market."

In oil markets, Brent crude traded at around $51.03 a barrel on Tuesday, down 1.14 percent, while U.S. crude was around $47.50 a barrel, down 1.82 percent. Crude prices have been under pressure recently amid oversupply concerns.

—Reuters contributed to this report.