Treasury yields dipped on Tuesday as weaker-than-expected retail sales data dented risk sentiment.
U.S. retail sales increased less than expected in October amid rising coronavirus cases. The Commerce Department said on Tuesday retail sales rose 0.3% last month, versus a 0.5% gain expected by economists polled by Dow Jones
"Retail sales in October are already showing signs of slowing in a second major pandemic lock down even before the surge in deadly virus cases made many states issue a wave of new restrictions in the first weeks of November," Chris Rupkey, chief financial economist, said in a note on Tuesday.
Daily cases of the coronavirus in the U.S. have continued to surge, with more than 1 million confirmed in less than a week. This took the country's total number of confirmed Covid-19 cases above 11 million, according to data compiled by Johns Hopkins University.
Yields had been rising on optimism about an effective coronavirus vaccine. Moderna on Monday said that trial data showed its coronavirus vaccine was more than 94% effective in preventing Covid-19.
Pfizer and BioNTech announced a week earlier that their own vaccine was more than 90% effective against the coronavirus.
Auctions will be held Tuesday $30 billion worth of 119-day bills and $30 billion of 42-day bills.