Benchmark 10-year note yields were last up 1.1 basis points on the day to 3.1396 percent, compared with a five-month low of 3.092 percent hit on Monday.

‘We need to see more weak data out of the US or further risk aversion (for yields to reach new lows),’ said Nick Stamenkovic, bond strategist at Ria Capital Markets.

‘The auctions of short-term debt may be contributing to the cautious stance this morning, but the main driver is equities. They have stabilised after the sell-off yesterday and that's taken the shine off Treasuries,’ he said.

The Treasury will sell $35 billion in two-year and five-year notes on Tuesday and Wednesday, respectively, and $29 billion in seven-year notes on Thursday.

The recent rally that has sent five- and seven-year yields to five-month lows could potentially complicate the auctions, with some investors uncertain about buying the paper at such high levels, analysts said.

Investors were closely watching the debate about a potential Greek debt restructuring, with disagreements among euro zone policymakers about how to handle the country's debt crisis heightening uncertainty and fuelling risk aversion over the past few days.

Moody's on Tuesday warned Portugal's and Ireland's credit ratings would struggle to remain investment grade in the event of a default by Greece, capping losses for Treasuries.

Treasury futures were last down 3/32s on the day at 122-29/32, while two-year yields were last 0.8 basis points higher at 0.5356 percent. Five-year yields were 2 bps higher at 1.8020 percent.