U.S. Treasury yields were higher on Tuesday after a day's holiday, as investors looked toward the FOMC meeting minutes later this week and digested a bond selloff in Europe.

At 4.21 a.m. ET, the 10-year Treasury yield was up 3.5 basis points at 4.511%, while the 2-year Treasury yield was up more than one basis point at 4.274%. One basis point is equivalent to 0.01%, and yields share an inverse relationship with prices.

The move higher comes after European bond yields increased significantly on Monday on expectations that countries across the region will hike their defense spending.

Investors will also be watching the Fed meeting minutes, slated for release Wednesday, for clues as to how long the central bank plans to keep rates unchanged.

Fed Chair Jerome Powell has consistently emphasized that the central bank isn't rushing to lower interest rates, but any insight into the future direction of monetary policy will be appreciated by investors.

According to CME Group data, markets are anticipating only one or two quarter-point rate cuts by the end of 2025. Markets are pricing in a near-98% chance of no rate cuts at the Fed's next meeting in March.

Ahead of the Presidents' Day holiday, Wall Street's three major indexes logged a week of gains. The majority of last week's advances occurred on Thursday after President Donald Trump's proposal for reciprocal tariffs on countries with levies on U.S. goods reassured investors who were concerned about harsher measures.

Sentiment also settled following the release of January's producer price index last Thursday and the consumer price index report on Wednesday, both of which helped push back rate-cut expectations until the second half of the year.