Treasury prices were lower as Europe moved closer to containing its debt crisis.
Greece's finance minister said the country would receive its next installment of emergency loans in time to avoid a default.
The price of the benchmark 10-year Treasury note fell 81.25 cents for every $100 invested Tuesday. The yield rose to 1.99 percent from 1.90 percent late Monday.
The yield on the 30-year bond Tuesday rose to 3.07 percent from 2.99 percent Monday. Its price fell $1.53 per $100 invested.
The Treasury Department sold $35 billion in two-year notes to strong demand. The notes fetched a yield of 0.249 percent.
Bids for the notes were 3.76 times more than supply, compared to 3.28 in the previous four auctions. Foreign demand was also strong at 36.7 percent, the highest level since April.
The yield on the 3-month T-bill was 0.01 percent compared with 0.04 percent on Monday.
The discount was not available.