U.S. government debt prices held higher Tuesday following a sale of two-year notes and as a rally in risk assets faded.
The slides in yields came as oil prices fell and U.S. and European stock markets dipped.
The Treasury Department also auctioned $26 billion in two-year notes at a high yield of 0.752 percent, the lowest yield since September, according to Reuters. The bid-to-cover ratio, an indicator of demand, was 2.91, versus a recent average of 3.17.
Indirect bidders, which include major central banks, were awarded 55.8 percent, against a recent average of 46 percent. Direct bidders, which includes domestic money managers, bought 10.8 percent, compared to a recent average of 15 percent.