U.S. Treasury yields retreated Tuesday morning, with investor focus remaining on the Covid-19 outbreak in China and concerns over a global economic slowdown.

The yield on the benchmark 10-year Treasury note fell 8.9 basis points to 2.74% at 4:10 p.m. ET. The yield on the 30-year Treasury bond moved 5.12 basis points lower to 2.842%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Investors kept an eye on a Covid-19 breakout in Beijing, China, and worried about a lockdown and slow economic growth in the region. Beijing announced late Monday that it would be expanding mass testing for the virus.

"Growth scares will cause a temporary decline in yields but unless there's a real threat of a global slowdown (which there isn't yet) then the direction of global yields remains higher, and we again think it's just a matter of time until the 10-year yield hits 3%," Tom Essaye, founder of Sevens Report, said in a research note.

The potential drag on economic growth from higher inflation and rising interest rates also remains a concern for investors.

David Pierce, managing director at GPS Capital Markets, told CNBC's "Squawk Box Europe" on Tuesday that he believed the Federal Reserve would hike interest rates by 50 basis points at both of the next two policy meetings.

However, Pierce said these hikes could "really precipitate a turnaround in the economy and slow things down so much so that they might have to back those off very quickly — it is a really volatile situation right now."

Developments in the Russia-Ukraine war also continue to be a focus for investors. At a high-level meeting in Kyiv on Sunday, the U.S. pledged just over $700 million in military financing to help Ukraine and other allied countries in central and eastern Europe involved in the war effort.

The U.S. State Department approved a potential sale of $165 million in ammunition to Ukraine.

— CNBC.com staff contributed to this market report.