The bond market's gains were limited by encouraging domestic data that supported the view the US Federal Reserve will raise interest rates in December.
               
Bond prices retreated from their initial highs as US oil futures jumped more than 3 percent on worries that an escalation in tensions between Turkey and Russia would disrupt crude exports from the Middle East.
               
Analysts and traders expect the tension between the two nations will likely remain contained for now.
               
"It's more of a one-off situation. I don't think either side wants to expand this," Milstein said Larry Milstein, head of US government and agency trading at RW Pressprich & Co. in New York.

 

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