Yields on U.S. government bonds diverged on Tuesday, with short-dated debt catching a bid while the long end sold off. The two-year Treasury yield slipped 1.9 basis points to 3.735%, according to indicative pricing shortly after midday in New York. In contrast, benchmark 10- and 30-year yields climbed to their highest levels of the session, with the 10-year approaching 4.3%. The moves steepened the yield curve as investors rotated out of longer-maturity securities even as demand persisted for shorter tenors.