Treasury prices slipped Tuesday after the Treasury sold debt in its first bond auction of the week.
The Treasury Department raised $32 billion from a sale of three-year notes at a yield of 0.38 percent. Bond buyers placed $3.53 in bids for every $1 on offer, better than the $3.44 average of the previous four.
Treasury prices often fall and yields rise before an auction as bond dealers try to woo buyers. The government expects to raise $66 billion in three bond auctions this week. The next one comes Wednesday with the sale of $21 billion in 10-year notes.
The 10-year Treasury note dropped 53.1 cents for every $100 invested. The 10-year yield rose to 1.66 percent, up from 1.59 percent in late Monday trading.
The price of the 30-year Treasury bond fell $1.37 for every $100. That pushed its yield to 2.77 percent from 2.71 percent late Monday. The yield on the two-year note rose to 0.29 percent from 0.27 percent.
In the market for short-term bills, the yield on the three-month Treasury bill was 0.09 percent.