Bond prices rallied on Wednesday after the U.S. government's auction of five-year Treasury notes, the second of three debt auctions this week.
The Treasury Department auctioned $35 billion in five-year notes at a high yield of 1.513 percent, the lowest rate on the maturity since November. The bid-to-cover ratio, an indicator of demand, was 2.73, compared to a recent average of 2.65.
Prices on 30-year Treasury bonds rose 1 8/32 in price to yield 3.30, from 3.29 percent late Tuesday. U.S. 30-year yields hit a low of 3.311 percent, the lowest since May 15.
Benchmark 10-year U.S. Treasury notes were up 21/32 in price to yield 2.45 percent, from 2.52 percent on Tuesday. Yields touched a low of 2.466 percent, their weakest level since July 22 last year, undermined by falls in the German bond market following weak data and more month-end buying from institutional investors.