US Treasurys rise, erasing earlier losses after key housing data

U.S. government debt prices rebounded on Tuesday as investors parsed through disappointing housing data.

Housing starts totaled 1.172 million in April, well below the expected 1.26 million. That was the lowest level since last November and followed a downwardly revised rate of 1.20 million units in March.

Meanwhile, industrial production rose 1 percent, more than the expected increase of 0.4 percent.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.3283 percent, while the yield on the 30-year Treasury bond was also lower at 2.9921 percent. Yields traded higher earlier in the session.

Investors also kept an eye on Washington after U.S. President Donald Trump reportedly shared classified information with Russian officials. The Washington Post first reported the news, with other outlets following.

National Security Advisor H.R. McMaster said Tuesday that Trump's talks with Russian officials were "wholly appropriate." He added that the premise of the Post's article was "false."

The political turmoil has sent the U.S. dollar to its lowest level since the election last November.

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In oil markets, Brent crude traded at around $51.74 a barrel on Tuesday, down 0.15 percent, while U.S. crude was around $48.75 a barrel, down 0.2 percent. The International Energy Agency reported Tuesday that the oil market is on course to reach a supply-demand balance this year.

—Reuters contributed to this report.