U.S. government debt prices erased slight gains on Tuesday, as investors digested news out of Donald Trump's first overseas trip as President as well as fresh supply.
The Treasury Department auctioned $26 billion in two-year notes at a high yield of 1.316 percent, its highest since September 2008. The bid-to-cover ratio, an indicator of demand, was 2.90, its highest since May 2016.
Indirect bidders, which include major central banks, were awarded 57.2 percent. Direct bidders, which includes domestic money managers, bought 12.4 percent, the most since February.
"Stats were stronger than average to be sure, but very similar to April auction results where we stopped through 0.2bp. Overall a solid event though we're still not fans of the 2-year until the Fed meeting next month has passed," said Aaron Kohli, interest rate strategist at BMO.
The two-year note yield traded around 1.3 percent after the sale. Meanwhile, the yield on the benchmark 10-year Treasury note sat slightly higher at around 2.273 percent at 1:04 p.m. ET, while the yield on the 30-year Treasury bond climbed to 2.932 percent. Bond yields move inversely to prices.