In international news, Italian bond yields jumped after proposals to introduce a parallel currency in Italy added to political pressures. Italy's 10-year bond yield climbed 8 basis points to a three-week high at 2.11 percent, stretching the gap against the German bund, according to Reuters.
The spread between the Italian 10-year and the German 10-year is about 1.701, the highest since mid-July.
On the central bank front, no major speeches are set to take place by the Federal Reserve on Tuesday, however investors will be looking to the 2017 Economic Policy Symposium on "Fostering a Dynamic Global Economy" at Jackson Hole due later on this week.
At the meeting, Fed Chair Janet Yellen and European Central Bank President Mario Draghi are both set to speak, with investors watching the event closely for any indications when it comes to monetary policy outlook.
Meanwhile, politics will remain on the minds of investors, after President Donald Trump committed the U.S. to an open-ended conflict in Afghanistan, reversing course from what Trump had pledged during his election campaign; Reuters reported.
On the data front, the Philadelphia Fed non-manufacturing business outlook survey's broadest measure of manufacturing conditions, the diffusion index of current activity, fell slightly from 19.5 in July to 18.9 in August.
Also in data news, U.S. home prices rose 1.6 percent in the second quarter of 2017 according to the Federal Housing Finance Agency's House Price Index (HPI). House prices rose 6.6 percent from the second quarter of 2016 to the second quarter of 2017.