Treasury yields climbed on Tuesday as investors grew more optimistic that the coronavirus pandemic may be stabilizing in the U.S. and globally.
Investors have been soothed by data over the weekend showing a slowdown in the number of new cases of the coronavirus in the U.S., while death tolls in other global hotspots have also begun to tail off.
The World Health Organization (WHO) has also lauded the speed of progress in the development of vaccines and treatments.
However, White House Health Advisor Anthony Fauci cautioned Monday that the world may never return to what was considered "normal," and U.S. cases have now surpassed 368,000 with more than 10,900 deaths.
"Improving coronavirus assessments combined with better euro-zone data overnight to extend the bid for global equities at the expense of Treasuries," Ian Lyngen, BMO's head of U.S. rates, said in a note on Tuesday.
Stocks looked to build on Monday's sharp rebound as a slew of coronavirus headlines pointed to a potential stabilization in the U.S., particularly in New York state.
On the data front, IBD/TIPP Economic Optimism for April and February's JOLTs Job Openings figures are due at 9 a.m. ET.
Auctions will be held Tuesday for $40 billion of 119-day Treasury bills, $45 billion of 69-day bills and $25 billion of 10-year notes.