U.S. government debt prices were lower Tuesday as traders monitored U.S.-China trade developments.

The yield on the benchmark 10-year Treasury note rose to around 2.737 percent, while the yield on the 30-year Treasury bond increased to 3.101 percent. Bond yields move inversely to prices.

Market players are focused on U.S.-China trade developments with mixed messages on the progress of talks between Washington and Beijing over the last few days. Sources told CNBC Monday that U.S.-China trade negotiations are in the “final stages” and that a summit in Mar-a-Lago later this month could close the deal.

The New York Times also said in a report that Monday the trade deal being discussed would do little to address key structural issues. These include efforts by the Chinese to curb cybertheft and subsidies that the Trump administration argues make it harder for U.S. companies to do business in China.

Meanwhile, the Commerce Department said Monday that construction spending dropped 0.6 percent in December. Economists polled by Refinitiv had forecast a gain of 0.2 percent.

In other data news, there will be services PMIs at 9.45 a.m. ET; new home sales at 10 a.m. ET and federal budget figures released at 2 p.m. ET.

Furthermore, Richmond Fed President Tom Barkin and Boston Fed President Eric Rosengren are set to deliver individual speeches later on Tuesday.

– CNBC’s
Silvia Amaro
Fred Imbert
contributed to this report.

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