U.S. government bonds edged higher on Tuesday after the U.S. government's auction of three-year Treasury notes, the first of three debt auctions this week.
The Treasury Department auctioned $30 billion in three-year notes at a high yield of 0.802 percent. The bid-to-cover ratio, an indicator of demand, was 3.25.
The Treasury will sell $21 billion in 10-year notes on Wednesday and $13 billion in 30-year bonds on Thursday.
"The auctions are the main event in Treasury space," said Ian Lyngen, a senior government bond strategist at CRT Capital in Stamford, Connecticut, in a research note.
Traders have said that the auctions will likely attract buyers after last week's drop in Treasury prices.
The yield on the benchmark 10-year U.S. Treasury note rose 18 basis points to 2.79 percent last week after a calming of geopolitical tensions in Russia and Ukraine and stronger-than-expected U.S. jobs data triggered selling of safe-haven bonds.
The 10-year yield hit 2.82 percent on Friday, its highest level in six weeks. Bond yields move inversely to their prices.
While remaining mostly flat, benchmark Treasurys prices edged lower on Tuesday after the release of Commerce Department data showing U.S. wholesale inventories rose more than expected in January, though sales posted their largest decline in nearly five years.