U.S. Treasury prices fell on Tuesday after consumer prices recorded their largest increase in more than a year, which may give the Federal Reserve more confidence in adopting a hawkish tone when it meets this week.
Benchmark 10-year notes fell 13/32 in price to yield 2.64 percent, up from 2.60 percent late on Monday. Thirty-year bonds dropped 23/32 in price to yield 3.44 percent, up from 3.40 percent.
Two-year note yields, which are highly sensitive to Fed policy, were flat at 0.47 percent, the highest since April 4. Three-year notes, meanwhile, dropped 4/32 in price to yield 0.99 percent, the highest since May 2011.