U.S. Treasuries fell on Tuesday as traders grew concerned over a possible recession triggered by an ongoing downturn in the housing market.

In a speech today, Federal Reserve Bank of Philadelphia President Charles Plosser said he had not decided whether he favors cutting borrowing rates or not when bank members meet later this month.

The two-year note yield rose to 2.722 percent at 3:55 p.m. in New York. Ten-year not yields rose to 3.820 percent.

Plosser said further interest rate cuts may be needed if the economy gets substantially weaker, but added

In a separate speech, Boston's Fed President Eric Rosengren said that a decline in the housing market could