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US Treasurys edge lower as investors eye economic data; 2-year note auction

U.S. government debt prices were lower on Tuesday as investors digest fresh economic data.

The Treasury Department auctioned $26 billion in 2-year notes at a high yield of 1.280 percent. The bid-to-cover ratio, an indicator of demand, was 2.85.

Indirect bidders, which include major central banks, were awarded 58.9 percent, well above a recent average of 42.4 percent. Direct bidders, which includes domestic money managers, bought 11.4 percent.

The yield on the 2-year note was 1.266 percent following the sale.

The percentage awarded to indirect bidders was the highest of that group since June 2009, according to BMO. Indirect bidders could be anyone bidding through a dealer, either domestic buyers or foreigners — although historically it has been foreigners.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.338 percent, while the yield on the 30-year Treasury bond was also higher at 2.99 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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In economic news, U.S. home prices rose more than expected in February, according to new data from the S&P/Case-Shiller U.S. National Home Price Index.

The national home price index jumped 5.8 percent in February, while analysts were expecting home prices to climb by 5.7 percent.

New home sales rose 5.8 percent to 621,000 in March, above expectations. Consumer confidence held at 120.3 for April.

In oil markets, Brent crude traded at around $52.22 a barrel on Tuesday, up 1.20 percent, while U.S. crude was around $49.67 a barrel, up 0.89 percent.

Oil prices remained under pressure on Tuesday as traders appeared to lose confidence that pledged output cuts from OPEC would be able to sufficiently rein in global oversupply.

— CNBC's Luqman Adeniyi and Patti Domm contributed to this report.