By Deborah Levine, MarketWatch NEW YORK (MarketWatch) -- Treasury prices were mostly lower in light trading on Tuesday, nudging yields up to four-month highs, before reports on home prices and consumer confidence. "More economists and investors are positioning for a stronger economy," said Andrew Brenner, head of emerging markets at Guggenheim Securities. "Bonds are struggling." Yields on benchmark 10-year notes (UST10Y 3.84, +0.05, +1.19%) increased 1 basis point to 3.85%, the highest in four months. A basis point is 0.01 percentage point. Yields move in the opposite direction from prices. Two-year-note yields (UST2YR 1.03, +0.09, +9.06%) spent most of the overnight session lower and recently traded little changed at 1.10%, also the highest since August. Traders also noted very light trading, with volumes near half the 10-day average. "The low-liquidity, volatile nature of year-ends reminds us that the prices have changed more than the facts," strategists at CRT Capital group wrote in a note. "The data remains mixed," with compelling points on either side, they said. The Case-Shiller home-price index will be released at 9 a.m. Eastern Time. A report on consumer confidence in December at 10 a.m. is expected to show an improvement. Also in the spotlight today will be the government's auction of 5-year notes, following lackluster demand at its sale of 2-year notes on Monday. See more on 2-year auction. Yields on the current 5-year note (UST5YR 2.59, +0.06, +2.41%) rose 1 basis point to 2.62%. "The market will remain in the defensive supply mode, with question of foreign participation creating some anxiety for the $42 billion 5-year note," said John Spinello, Treasury strategist at Jefferies & Co., one of the 18 primary government security dealers that are required to bid at auctions.

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