Treasury yields extended gains as markets continue to price a slower pace of interest rate cuts following Friday's blockbuster jobs report. On the CME's FedWatch, odds of no cut in November rose to 13% from zero before the Labor Department said a higher-than-expected 254,

U.S. Treasury yields fell on Tuesday as investors sought safety amid rising tensions in the Middle East.The yield on the 10-year Treasury slid more than 6 basis points to 3.741%. The 2-year Treasury yield dropped over 3 basis points to trade at 3.

Short-dated U.S. Treasury yields are likely to fall due to the prospects of further interest-rate cuts by the Federal Reserve, though longer-dated Treasury yields should stay roughly steady, analysts at UniCredit said in a note.