US Treasury prices rose on Tuesday, pushing yields lower, bolstered by a strong US five-year note auction in a light market ahead of the holidays.

The Treasury market is closed on Wednesday for the Christmas holiday.

U.S. yields across most maturities hit session lows following the five-year auction.

The Treasury's $41 billion auction of five-year notes drew strong demand and priced at 1.756 percent, well below the 1.772 percent yield at the bid deadline. Tuesday's yield was the highest since July, analysts said.

Bids totaled $102.0 billion for a 2.49 bid-to-cover ratio, consistent with the 2.50 cover last month, but slightly higher than the 2.37 average. Indirect bidders, which include financial institutions and foreign central banks, accounted for 62.4 percent of the bids, roughly in line with November's 64.8 percent and higher than the 59.1 percent average.

"The auction was surprisingly good and caught the market off guard," said Lou Brien, market strategist at DRW Trading in Chicago.

Robust demand for US 5-year notes lifted Treasury prices on a day with scant volume, after they were trading weaker for most of the New York morning session.

"Maybe some people that were bidding on the auction laid back a little bit," Brien said. "The surprising strength of the auction made people think that they missed the boat, so they're piling back into the market."

In early afternoon trading, US 10-year yields dropped to 1.903 percent from 1.935 percent on Monday, while those on US 30-year bonds were at 2.332 percent, down from 2.362 percent on Monday.

After the auction, US 5-year note yields fell to 1.714 percent, compared with Monday's 1.754 percent.

On the short end of the curve, U.S. two-year yields fell to 1.629 percent, from Monday's 1.657 percent, after earlier hitting a two-week peak of 1.671 percent.