U.S. government debt yields rose on Tuesday as investors looked ahead to fresh economic data and a key Federal Reserve meeting.
The yield on the benchmark 10-year Treasury notes, which moves inversely to its price, was higher at around 2.241 percent, while the yield on the 30-year Treasury bond was also higher at 2.811 percent.
The central bank began a two-day meeting Tuesday. The Fed is expected to take another step towards normalization and could also announce plans to begin unwinding its $4.5 trillion balance sheet of Treasurys and mortgage backed securities. The Fed acquired the bulk of these assets in an effort to stimulate growth that had been stunted by the financial crisis.
The central bank has grown concerned both with the effect low rates have on stock markets while simultaneously grappling with lethargic inflation metrics and sluggish wage growth.
While investors doubt bankers will elect to raise rates in September, more and more now foresee another rate hike by the end of the year. Market prices suggest less certainty, but 76 percent of respondents to the CNBC Fed Survey believe the central bank will hike interest rates in December.
On the data front, housing starts slipped 0.8 percent to a seasonally adjusted annual rate of 1.18 million units, the Commerce Department said on Tuesday.
The data suggested limited impact on permits from Hurricane Harvey, which lashed Texas in late August and caused unprecedented flooding in Houston.
The Labor Department said on Tuesday that import prices jumped 0.6 percent last month, the biggest gain since January, after a downwardly revised 0.1 percent dip in July.
Economists polled by Reuters had forecast import prices increasing 0.4 percent in August
In oil markets, Brent crude traded at around $54.91 a barrel on Tuesday morning, down 1.03 percent, while U.S. crude was around $49.36 a barrel, down 1.1 percent.
Iraq's oil minister said his country's oil production had slipped slightly when compared to May and June. His comments followed data showing that Saudi Arabia's oil exports had fallen in June.