NEW YORK (CNNfn) - U.S. Treasuries edged lower Tuesday as investors chased higher returns in U.S. equities.
All three major U.S. stock indexes were higher in late trade Tuesday, particularly the Nasdaq composite index, which advanced in record territory.
"The recovery in stocks is leading a little bit to higher yields in Treasurys," said Charles Reinhard, senior market strategist at ABN Amro.
Traders said activity was subdued as many participants were sidelined ahead of key economic reports scheduled Wednesday and Friday.
Shortly before 3 p.m. ET, the 10-year Treasury note was flat in price at 100-17/32. Its yield, which moves inversely to price, was unchanged from 6.42 percent Monday. The 30-year bond rose 14/32 to 101-8/32, its yield falling to 6.15 percent from 6.19 percent Monday.
Economic news shrugged off
Tuesday's economic news was largely ignored. U.S. consumer confidence fell to 141.8 in February from 144.7 in January, slightly below expectations of 143.5.
Separately, the Chicago National Association of Purchasing Managers' (NAPM) index rose to 56.7 in February, against 55.6 in January. The index measures manufacturing activity in the region and often provides clues about the strength of national manufacturing.
Investors await economic releases considered more significant, Wednesday's National Association of Purchasing Managers' survey and Friday's employment report. Analysts surveyed by briefing.com forecast 235,000 new non-farm jobs were created in February, vs. 387,000 in January, and unemployment will hold steady at 4.0 percent.
With the U.S. economy in a record period of expansion at 107 months, any sign of inflation in these reports may have a negative impact on bonds. The Federal Open Market Committee (FOMC), the Fed's policy-making arm, has increased short-term interest rates four times since last June in an effort to keep inflation tame. Analysts widely believe the FOMC will hike rates again by a quarter percentage point when it meets on March 21.
(Click here for a look at briefing.com's economic calendar.)
High commodity prices weigh
Analysts said higher commodity prices, notably oil, also weighed on Treasurys. In New York, April crude oil futures last traded up 30 cents a barrel at $30.43.
Nevertheless, the 30-year bond managed a gain. A trader at a U.S. investment attributed some of its strength to anticipation about the U.S. Treasury's buyback program. He said many traders expect the first buyback to take place in the next week or two. In late January, the Treasury Department, faced with a budget surplus, announced plans to reduce the issuance of long-term debt. However, it has not announced any definitive plans.
Dollar strengthens
The dollar rose against the major currencies Tuesday. At around 2:50 p.m. ET, the euro changed hands at 96.75 U.S. cents, down from 97.08 cents Monday, a 0.34 percent gain in the dollar's value.
Meanwhile, the dollar traded at 109.91 yen, up from 109.47 yen Monday, a 0.40 percent gain in the dollar's value. 
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