U.S. government debt prices posted sharp gains on Tuesday, as investors geared up for fresh economic data.
The yield on the benchmark 10-year Treasury note was sharply lower at around 2.838 percent at 5:05 a.m. ET, while the yield on the 30-year Treasury bond was also deep in the red at 3.015 percent. Bond yields move inversely to prices.
As markets around the world remained jittery over geopolitical happenings, investors in the bond market will likely focus on economic data on Tuesday.
At 9 a.m. ET, S&P/Case-Shiller house price index (HPI) is set to be released, followed by consumer confidence at 10 a.m. ET and the Dallas Fed's Texas Manufacturing Outlook survey at 10:30 a.m. ET.
Speaking of the U.S. Federal Reserve, on Tuesday, St. Louis Fed President James Bullard said at a seminar in Tokyo that the U.S. central bank would have trouble increasing interest rates far beyond those of central banks in Asia and Europe, of which are still opting for accommodative policy, Reuters reported.
Elsewhere, the U.S. Treasury is scheduled to auction $48 billion in 13-week bills, $42 billion in 26-week bills and $40 billion in four-week bills.
Looking to politics, investors in Europe and Asia appear jittery as concerns of possible early elections in Italy rattle market sentiment.
Meantime, the future of talks between North Korea and the U.S. keep investors on their toes both in the States and overseas. Last week, President Donald Trump made the decision to cancel a key nuclear summit between himself and North Korea's Kim Jong Un.
On Friday, however, Trump said that the U.S. administration had restarted its dialogue with the Asian country, and suggested that a meeting could still take place.
North Korea has sent some of its top officials to Singapore and the U.S., Reuters reported Tuesday citing Asian media outlets, suggesting that the on-again-off-again summit between the two countries could still occur.
—CNBC's Jacob Pramuk and Reuters contributed to this report
