Treasury prices edged higher Tuesday as mixed economic data and worries over the European debt crisis kept demand for U.S. debt steady.
Italy's borrowing costs rose again. The yield on Italy's 10-year bond yield hit 7 percent, which is seen as unsustainable. Greece, Ireland and Portugal had to get relief from their lenders after their own borrowing costs rose that high.
The price of the benchmark 10-year Treasury note rose 15.6 cents per $100 invested Friday. Its yield fell to 2 percent from 2.03 percent Friday. Trading was closed Monday in observance of Christmas.
U.S. economic news was mixed. Consumer confidence surged to an eight-month high, but home prices dropped in major cities.
The yield on the 30-year bond fell to 3.03 percent from 3.05 percent. Its price fell 43.8 cents.
The yield on the two-year Treasury note was unchanged at 0.29 percent. The three-month T-bill paid a yield of 0.01 percent. Its discount wasn't available.