U.S. Treasury bonds held onto modest gains in late trading as investors awaited the pricing of SpaceX's inaugural $25 billion bond offering. The bond market found support from a combination of factors: a global sell-off in chip stocks that dragged down the technology sector and triggered broader equity declines, and falling oil prices as shipping traffic gradually resumed through the Strait of Hormuz. Shorter-dated Treasuries outperformed both before and after the U.S. 2-year note auction.

Just after 3 p.m. New York time, Treasury yields were down 1 to 3 basis points, led by short- and intermediate-term bonds. This movement pushed the 2s10s spread up by 2 basis points and the 5s30s spread up by 1.3 basis points. The yield on the 10-year Treasury note hovered around 4.49%, down about 1 basis point on the day, a smaller decline than seen in most comparable European bonds.

The 2-year note auction stopped at a yield below its pre-auction trading level, with strong bidding metrics. Primary dealers were awarded 10.2%, the lowest share since February, while direct bidders took 34.3%, an increased share. Indirect bidders were awarded 55.5%, a decreased portion.

The S&P 500 index was down 1.4% late in the session, while the Nasdaq 100 index fell more than 3%. Nvidia and Micron Technology were among the biggest drags on the indices; Micron Technology plunged as much as 13% ahead of its quarterly earnings report scheduled for Wednesday.

WTI crude oil futures fell nearly 1%, hitting their lowest settlement price since March 2.

As of 4:22 p.m. ET, key Treasury yields were as follows:

The 2-year Treasury yield was at 4.1983%.

The 5-year Treasury yield was at 4.268%.

The 10-year Treasury yield was at 4.4969%.

The 30-year Treasury yield was at 4.9443%.

The yield spread between 2-year and 10-year notes was 29.45 basis points.

The yield spread between 5-year and 30-year bonds was 67.45 basis points.