Treasury prices rose Tuesday after Federal Reserve Chairman Ben Bernanke said rising oil prices could hurt the economy.
The price of the 10-year note rose 25 cents. Its yield fell to 3.40 percent from 3.42 percent late Monday.
Oil prices rose $2.66 to settle at $99.63 a barrel, after surging 13 percent in the last week because of continued unrest in the Middle East and North Africa. Libyan leader Moammar Gadhafi launched counter-attacks against rebels who were expanding control over the country, while Iran clamped down on anti-government protesters.
Bernanke, in testimony to the Senate Banking Committee, said a prolonged increase in crude prices could pose a risk to the U.S. economic recovery.
The 30-year bond rose 31.25 cents. Its yield fell to 4.48 percent from 4.49 percent Monday. The yield on the 2-year note dropped to 0.66 percent from 0.69 percent.
In the short-term Treasury bill market, the three-month bill paid a 0.13 percent yield. Its discount was 0.14 percent.