U.S. Treasury yields rose on Tuesday after the 2-year rate hit its highest level since November 2007.
The yield on the short-term 2-year Treasury note rose as high as 3.497%, its highest level in 14 years. It was last trading up about 4 basis points at 3.466%.
Yields move inversely to prices, and a basis point is equal to 0.01%.
On Tuesday European Central Bank policymaker and Estonian central bank Governor Madis Muller said the central bank should discuss a 75-basis-point rate hike in September given exceptionally high inflation.
Markets are still processing a Friday speech by U.S. Federal Reserve Chair Jerome Powell, in which he said the central bank would continue raising interest rates at a level that may cause "some pain" to the economy.
Powell's comments led to two days of declines for the major U.S. stock market averages.
U.S. equities extended declines on Tuesday from the previous two sessions, after opening higher. The dollar index also weakened slightly after hitting a 20-year high Monday in the wake of market volatility.
— CNBC's Jeff Cox contributed to this report.