U.S. government debt prices extended their gains, sending yields higher, as traders eyed the results of the latest Federal Reserve meeting, which begins Tuesday.
Bonds rose following a report on the U.S. housing industry that showed new housing starts tumbled 17 percent to 897,000 in February, well below the 1.05 million starts expected.
The policy-setting Federal Open Market Committee is widely expected to drop the word "patience" from its statement Wednesday. Investors will be closely watching the Fed's guidance for hints on the pace at which it will normalize monetary policy, with some estimating that interest rates could be increased as early as June.
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The Fed will also release updated economic forecasts and Fed Chair Janet Yellen will hold a briefing.
The yield on 10-year Treasury notes (U.S.: US10Y)-used to calculate mortgage rates and other consumer loans-slid to 2.043 percent on Tuesday, down from 2.098 percent Monday.
U.S. 30-year Treasury bond yields were last at 2.620 percent, from a yield of 2.676 percent on Monday.
Brent crude fell below $54 a barrel on Tuesday, reversing earlier gains due to concerns over a growing supply glut and the weight of the strong U.S. dollar.
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