Short-term Treasurys remained higher early Tuesday after the Commerce Department confirmed that the U.S. economy contracted at a 0.5% annual rate in the third quarter. Two-year note yields fell 3 basis points to 0.88%. The gross domestic product figure was the final revision for the three months ended in September and in line with expectations of economists surveyed by MarketWatch. Separate reports due at 10 a.m. are expected to show new and existing home sales slowed in November and consumer sentiment weakened in December. The Treasury Department will auction a record $28 billion in five-year notes, taking bids until 1 p.m. Eastern. Overnight trading volume was low as Japanese bond markets were closed.
