After moving higher over the past few sessions, treasuries gave back some ground during the trading day on Tuesday.
Bond prices moved lower early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.5 basis points to 2.973 percent.
The pullback by treasuries may partly have reflected profit taking following the strength seen over the past few days.
Trading activity was relatively subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
The economic calendar remains relatively light throughout the week, although reports on producer and consumer price inflation are likely to attract attention in the coming days.
Treasuries saw further downside following the release of the results of the Treasury Department's auction of $34 billion worth of three-year notes, which attracted below average demand.
The three-year note auction drew a high yield of 2.765 percent and a bid-to-cover ratio of 2.65, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.87.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Amid another quiet day on the U.S. economic front, trading on Wednesday may be impacted by reaction to the Treasury's auction of $26 billion worth of ten-year notes.