After turning higher over the course of the previous session, treasuries saw some further upside during the trading day on Tuesday.
Bond prices pulled back off their highs in the latter part of the session but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped by 6.8 basis points to 2.924 percent.
With the notable decrease on the day, the ten-year yield ended the session at its lowest closing level in nearly three months.
The strength among treasuries came as traders looked to the safe haven of bonds amid skepticism about the trade war truce reached by President Donald Trump and Chinese President Xi Jinping.
Uncertainty about whether the 90-day truce will give the U.S. and China enough time to reach a long-term trade agreement contributed to the appeal of treasuries.
News that U.S. Trade Representative Robert Lighthizer, one of Trump's more hawkish advisors on trade with China, has been tapped to lead the negotiations added to the skepticism.
Trump has appeared optimistic about the potential for an agreement, claiming U.S. relations with China have taken a "big lead forward" as a result of his meeting with XI.
"Very good things will happen," Trump said in a post on Twitter. "We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!"
"President Xi and I have a very strong and personal relationship," he added. "He and I are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations."
The bond markets will be closed on Wednesday for the national day of mourning for former President George H.W. Bush, with the release of most economic data postponed until Thursday.
Subsequently trading on Thursday is likely to be impacted by reaction to a slew of data, including reports on private sector employment, the U.S. trade deficit, weekly jobless claims, and service sector activity.
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