Bond prices mixed as traders focus on economic data; approaching Fed meeting eyed

U.S. government debt prices were mixed on Tuesday as investors digested economic data ahead of a potential interest rate hike at the Federal Reserve's upcoming meeting.

The yield on the benchmark 10-year Treasury notes (U.S.:US10Y), which moves inversely to price, was lower at around 2.389 percent, while the yield on the 30-year Treasury bond (U.S.:US30Y) was also higher at 3.076 percent. The two-year note yield, however, traded slightly lower, near 1.11 percent.

Third-quarter U.S. productivity rose at an annualized rate of 3.1 percent, the Labor Department said, while the U.S. trade deficit widened to $42.6 billion. October factory orders, rose 2.7 percent, slightly above a 2.6 percent estimate from Reuters.

The data was released as investors got ready for the Fed 's meeting next week and a European Central Bank announcement on monetary policy due Thursday.

In oil markets, U.S. crude (New York Mercantile Exchange: @CL.1) settled down 1.66 percent at $50.93 a barrel.

Oil prices eased on Tuesday as crude output rose in almost every major export region despite plans by OPEC and Russia to cut production and triggered fears that a fuel glut witnessed for the past two years could be set to continue deep into 2017, according to a Reuters report.

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