By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices declined on Tuesday, pushing yields up slightly, as uneasiness about Europe persisted ahead of the U.S. government's first major auction of the week. The Treasury Department is expected to receive decent demand for $35 billion in 2-year notes 2_YEAR +2.61% to be sold at 1 p.m. Eastern time. "Final demand [in] the sector has picked up recently, and auction performance has been steady," said bond strategists at Barclays. Yields on 10-year notes 10_YEAR +0.99% , which move inversely to prices, rose 2 basis points to 1.63%.