WASHINGTON (dpa-AFX) - Following the sell-off seen in the previous session, treasuries saw some further downside during trading on Tuesday.
Bond prices regained ground after coming under pressure early in the day but remained in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.6 basis points to 4.365 percent.
The ten-year yield added to the 12.3 basis point surge seen on Monday, reaching its highest closing level in four months.
The continued weakness among treasuries reflected renewed uncertainty about the outlook for interest rates as traders digested recent U.S. economic data.
Last Friday's closely watched inflation data combined with Monday's stronger than expected manufacturing data have raised questions about whether the Federal Reserve will lower rates in June.
While CME Group's FedWatch Tool is currently still indicating 56.3 percent chance the Fed will cut rates by a quarter point in June, that is down from 63.8 percent a week ago.
On the U.S. economic front, the Commerce Department released a report showing a significant rebound in factory orders in the month of February.
The Commerce Department said factory orders surged by 1.4 percent in February after plunging by a revised 3.8 percent in January.
Economists had expected factory orders to jump by 1.0 percent compared to the 3.6 percent slump originally reported for the previous month.
Trading on Wednesday may be impacted by reaction to remarks by Fed Chair Jerome Powell as well as reports on private sector employment and service sector activity.
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