The Treasury Department auctioned $24 billion in three-year notes at a high yield of 1.056 percent on Tuesday. The bid-to-cover ratio, an indicator of demand, was 3.23.
Benchmark 10-year Treasury note yields touched session high of 2.20 percent after the announcement and was last at 2.19 percent. The yield on the three-year note was last at 1.035 percent hitting a peak of 1.049 percent after the sale.
U.S. Treasury yields crept higher earlier, pushing prices down as a generally firm tone in global stock markets dented the appeal of safe haven debt.
U.S. markets re-open after Monday's Labor Day holiday, with focus returning to the outlook for China's economy after data pointed to further signs of weakness. China's dollar-denominated exports declined by 5.5 percent year-on-year in August; imports tumbled 13.8 percent.