By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices came under modest pressure early Tuesday, pushing yields up, as U.S. stock futures pointed to a higher opening and oil prices rose, indicating more comfort among investors in moving assets to riskier sectors.
Bond losses were limited amid further reports of Greece having to take steps to slash its debt.
Yields on 10-year notes (UST10Y 3.69, -0.03, -0.67%) rose 2 basis points, or 0.02%, to 3.71%. Bond yields move inversely to prices.
Yields on 2-year debt (UST2YR 0.82, -0.04, -4.75%) were little changed at 0.83%.
Oil prices rose more than 1% above $75 a barrel. See more on oil.
Bonds stayed down after the New York Federal Reserve Bank said manufacturing activity in the state expanded at a faster pace in February. The bank's Empire State manufacturing index rose more than some analysts anticipated, to 24.9 in February from 15.9 in January.
The National Association of Home Builders' index is due at 1 p.m. Eastern time and is expected to show confidence improved slightly this month. See economic preview of the week's data.
European finance ministers demanded fresh budget cuts from Greece if a review of the country's debt-slashing measures doesn't meet approval next month. See more on Greece.
Bond markets were closed Monday for Presidents Day.
Traders will also listen for any comments about the economic outlook or monetary policy from a trio of Federal Reserve officials.
Kansas City Fed President Thomas Hoenig will speak at a budget policy forum at 12 p.m. Eastern. Atlanta Fed President Dennis Lockhart will speak on early education at 12:30 p.m. and Minneapolis branch President Narayana Kocherlakota speaks on the economy at 12:45 p.m.
Treasurys declined last week, pushing 10-year yields to the highest in a month, as the market absorbed $82 billion in government debt sales. Also, remarks earlier in the week from Federal Reserve Chairman Ben Bernanke hinted at steps the central bank may take towards unwinding some of its ultra-easy monetary policies. See Friday's bond column.
