The Treasury Department will offer $35 billion in two-year notes on Tuesday.

It will follow that with $35 billion in five-year notes on Wednesday and $29 billion in seven-year notes on Thursday.

"With the focus on Europe's problems, the extra supply is expected to meet demand," said Hiroki Shimazu, a senior market economist at SMBC Nikko Securities.

A European leaders summit in Brussels on Thursday and Friday will mark the 20th time EU leaders have met to grapple with the debt crisis.

Investors will be watching debt sales by Italy and Spain this week to gauge market confidence in their ability to continue funding their debt.

Italy plans to sell zero-coupon and inflation-linked bonds on Tuesday and medium- and longer-term bonds on Thursday. .

Spain's Treasury will issue between 2 billion and 3 billion euros of 3- and 6-month T-bills on Tuesday, and is likely to pay its highest short-term borrowing rates in over six months as investors demand high premiums.

On Monday, Moody's Investors Service downgraded 28 Spanish banks and two issuer ratings, and Spain formally requested up to 100 billion euros ($125 billion) to prop up its banks.

German Chancellor Angela Merkel put to rest the idea that Europe would issue common euro zone bonds to underpin its single currency.

The yield on US 10-year notes were steady from late US trade at 1.61 percent, but were down from 1.65 percent in Tokyo on Monday.

The yield on 30-year bonds stood at 2.68 percent, also steady from late US trade but below 2.74 percent in Tokyo trade on Monday.

On Monday, the Fed sold $8.37 billion in Treasuries with maturities ranging from March 2014 to October 2014 as part of its "Operation Twist" stimulus programme, under which it sells short-term notes and buys longer-term debt with the aim of pushing down long-term rates.

It will buy longer-dated securities on Tuesday, Wednesday and Friday, and sell more short-term debt on Thursday.

On the US data front, a report on Monday showed sales of new homes in May rose more than economists had forecast, but the market impact was muted.