The US Treasury bond yield rose slightly as market sentiment stabilized.

US Treasury yields rose during the Asian trading session as market sentiment stabilized after a flight to safety on Monday led to lower yields. Joel Rossier of Danske Bank said in a report, "Risk appetite seems to have stabilized in overnight Asian trading, with yields 1-2 basis points higher than yesterday's lows." President Trump's State of the Union address will be a potential market driver for the day. The senior analyst stated, "Recent tariff decisions and trade policies, as well as other political priorities leading up to the midterm elections this fall, are likely to be mentioned in the speech." The US Treasury is set to auction $69 billion in two-year notes. According to Tradeweb data, the two-year Treasury yield rose 1.5 basis points to 3.454%, while the 10-year yield increased by 1.7 basis points to 4.043%.