Tentative deal to avoid fresh government shutdown in focus
At around 4:30 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.6823 percent, while the yield on the 30-year Treasury bond was also higher at 3.0159 percent.
Market sentiment got a boost on news U.S. lawmakers had secured a tentative deal on border security funding on Monday.
The drafted agreement — which congressional aides said did not contain funds for a border wall — could help avert another partial government shutdown due to begin from Saturday.
On the data front, the NFIB Small Business Optimism Index for January is expected to be released at around 6:00 a.m. ET. Job Openings and Labor Turnover Survey (JOLTS) figures for December will be published later in the session.
There are no major Treasury bond auctions scheduled on Tuesday.