Treasury yields jumped on Tuesday as investors returned to risk assets after a deep sell-off last week triggered by the deadly coronavirus.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, jumped six basis points to around 1.5829%, while the yield on the 30-year Treasury bond was also higher at around 2.0607%.
Global stock markets are seeing a rebound after last week's sell-off on coronavirus fears. The gains came after after a Reuters report said China's central bank could cut its key lending rate as well as banks' reserve requirement ratios in the coming weeks to support economic growth.
"Any incoming information on the spread of virus is the most prudent course of action," Ian Lyngen, BMO's head of U.S. rates, said in a note on Tuesday.
Stronger-than-expected U.S. manufacturing data boosted investor sentiment on Monday, leading to lower bond prices.
Furthermore, bond investors are waiting for the results from Iowa caucuses, which were delayed late Monday night. The Democratic Party said there has been a "reporting issue."
President Trump is due to deliver his State of the Union speech at 9 p.m. ET.
On the data front, there will be factory orders at 10 a.m. E.T. Former Federal Reserve Chair Janet Yellen and World Bank Group President David Malpass are due to speak at 9.30 a.m. ET.
There are no auctions scheduled.