U.S. July retail sales data later on Tuesday could take on added significance after last week's University of Michigan survey showed consumer sentiment slumped to its lowest in a decade.
German bond yields fell alongside those of U.S. Treasuries to their lowest in over a week on Tuesday, ahead of a U.S. retail sales report that is expected to add to data showing slowing economic momentum.
Boston Federal Reserve Bank President Eric Rosengren said on Monday that one more month of strong job gains could satisfy the U.S. central bank's requirements for beginning to reduce its monthly asset purchases.