The 10-year Treasury yield increases as investors consider the possibility of a U.S. interest rate reduction.

On Tuesday, the rose as investors closely watched new economic data following the Federal Reserve's announcement that it would likely cut interest rates soon.

The 10-year Treasury yield increased by more than 2 basis points to 3.837%, while the yield on the 30-year Treasury increased by more than 1 basis point to 3.946%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

On Friday, Fed Chair Jerome Powell announced that "it's time for policy adjustments," increasing anticipation for a rate cut at the central bank's upcoming meeting. Despite this, Powell did not provide specific details on the timing or magnitude of the cut.

In his keynote address at the Fed's annual retreat in Jackson Hole, Powell stated that the direction of travel is clear, but the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.

The Fed's Sept. 18 meeting is expected to result in a rate cut, with traders pricing in a 71.5% chance of a 25-basis-point cut and 28.5% pricing in a 50-basis-point cut, according to the CME Group's FedWatch Tool.

The S&P CoreLogic Case-Shiller national home price index for June will be released at approximately 9 a.m. ET on Tuesday, followed by consumer confidence data for August and Richmond Fed surveys for August.

— CNBC's Jeff Cox contributed to this report.