Treasury yields rise, with U.S. politics and Middle East in focus

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Treasury yields rise, with U.S. politics and Middle East in focus
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Vivien Lou Chen is a Markets Reporter for MarketWatch. You can follow her on Twitter @vivienlouchen.

Most Treasury yields turned higher Tuesday morning as traders focused on the potential for a mid-November government shutdown and the lack of a ground invasion by Israel of Gaza.

The militant group Hamas released two hostages on Monday as Israel ramped up airstrikes and didn’t proceed with a ground assault yet. The war has mostly sent investors into two groups of traditional haven assets: gold and the Swiss franc. In economic data released on Tuesday, the S&P U.S. services purchasing managers index for October rose to a three-month high of 50.9 for October, while the manufacturing PMI climbed to a six-month high of 50.0.Treasury will auction $51 billion of 2-year notes at 1 p.m. Eastern time.

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