Dow Jones – The benchmark 10-year Treasury note price rose on Tuesday, pulling down the yield, ahead of a key home sales number that could give investors a snapshot of inflationary pressures from the housing market.
10-year US Treasury yields fell 1.6 basis points to 2.354%. The 2-year yield was slightly up at 1.763%, versus 1.754% late Monday, while the 30-year bond yield was down 3 basis points to 2.758%.
Bond prices move in the opposite direction of yields.
Home sales data
Investors will eye existing home sales data out later today, which could set the tone for the rest of the trading session.
Housing and rental prices are an important component of inflation measures. A strong number could raise the outlook for inflationary pressures running into next year.
"Housing is not as glaringly affordable as it was a few years ago, and we are starting to see some later-cycle behaviour on this front," said Robert Kavcic, senior economist with BMO Capital Markets.
Elsewhere, European government bonds extended their rally, kick-started by German Chancellor Angela Merkel's failure to form a majority coalition.
The German 10-year government bond yield fell 1.4 basis points to 0.351%. The French 10-year yield fell 4.4 basis points to 0.658%.