The Treasury Department auctioned $26 billion in 2-year notes at a high yield of 0.86 percent on Tuesday.
The bid-to-cover ratio, an indicator of demand, was 2.90, versus a recent average of 3.22.
Indirect bidders, which include major central banks, were awarded 57.9 percent, well above the 45 percent average.
Direct bidders, which include domestic money managers, bought 12.3 percent, versus a recent average of 16 percent.
U.S. sovereign bond prices held higher after the auction, weighing on yields even as U.S. stocks and oil prices rose in early trading.
The U.S. 10-year Treasury note yields, which moves inversely to the bond's price, fell to trade at 2.0046 percent, after closing at 2.022 percent on Monday. Meanwhile, the longer-dated 30-year yield fell to 2.7942 percent after finishing at 2.802 percent in the previous session.