US Treasury yields rose during Asian trading hours as market sentiment steadied following a risk-off mood on Monday that had pushed yields lower. Joel Rossier from Danske Bank noted in a report that risk appetite appears to have stabilized in overnight Asian trading, with yields climbing 1-2 basis points above their lows from the previous evening. President Trump's State of the Union address is expected to be a potential market driver for the day. The senior analyst added that recent tariff rulings and trade policies, along with other political priorities ahead of the midterm elections this fall, are likely to be addressed in the speech. The US Treasury is set to auction $69 billion in two-year notes. According to Tradeweb data, the yield on the two-year Treasury note increased by 1.5 basis points to 3.454%, while the 10-year yield rose by 1.7 basis points to 4.043%.