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The Treasury Department auctioned $26 billion in 2-year notes at a high yield of 0.76 percent.
The bid-to-cover ratio, an indicator of demand, was 2.83.
Indirect bidders, which include major central banks, were awarded 45.8 percent. Direct bidders, which includes domestic money managers, bought 25.2 percent.
The yield on the 2-year Treasury Notes sat at 0.7459 percent after the note sale.
Investors from across the globe will be looking to the U.S. central bank this week, as Fed Chair Janet Yellen is set to give a speech on August 26 at the Federal Reserve Bank of Kansas City's annual Economic Policy Symposium at Jackson Hole, Wyoming.
Investors will be waiting with bated breath to see if the Fed provides any indications as to when it may raise interest rates plus a long-term outlook for the U.S. economy.
New U.S. single-family home sales unexpectedly rose in July, reaching their highest level in nearly nine years as demand increased broadly, brightening the housing market outlook.
The Commerce Department said on Tuesday new home sales surged 12.4 percent to a seasonally adjusted annual rate of 654,000 units last month, the highest level since October 2007.
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-Reuters contributed to this report.