U.S. Treasury prices rose Tuesday as bond traders ignored a rising stock market and gravitated towards bonds ahead of possibly weaker home sales report this week which

may give the Federal Reserve a reason to jumpstart the economy with additional interest rate cuts.

Although bond prices dropped early in the day due to strong gains in the stock market bonds overcame early declines to close higher. Investors looking for signs of problems in the debt market have looking for more stable investments in government bonds.

Two-year notes, which are sensitive to interest rate adjustments, rose 3/32 to yield 3.817, down from 3.86 percent late Monday.

Ten-year notes, which change with the inflation outlook, were flat at 4.413 a basis point lower from late Monday.

Inflation