The Treasury Department auctioned $34 billion in 5-year notes at a high yield of 2.057 percent on Wednesday.
The bid-to-cover ratio, an indicator of demand, was 2.72.
Indirect bidders, which include major central banks, were awarded 71.4 percent. Direct bidders, which include domestic money managers, bought 4.1 percent.
U.S. government debt prices were higher on Wednesday, as investors digested the auction. Yields fell to session lows.
Benchmark 10-year Treasury notes were last up 11/32 in price to yield 2.523 percent. Bond yields move inversely to prices.
Amid the festive trading season, investors are expected to keep a close eye on two bond auctions this Wednesday. The U.S. Treasury is set to auction $34 billion in five-year notes and $13 billion in 1-year and 10-month floating-rate notes (FRNs).
When it comes to U.S. data, higher mortgage rates hit home sales, driving the National Association of Realtors Pending Home Sales Index down 2.5 percent in November from October, the NAR reported Wednesday.
On the oil front, crude futures posted small gains early on Wednesday, with the WTI hovering around $54.10 and Brent crude slightly higher at $56.26 per barrel.
- CNBC's Stephanie Dhue and Reuters contributed to this report.