Euro zone finance ministers and the International Monetary Fund reached an accord late on Monday to cut Greek debt by 40 billion euros, to bring it to 124 percent of gross domestic product by 2020.

Later on Tuesday, the US Treasury Department will offer $35 billion of two-year notes, as part of this week's $99 billion in debt sales.

It will be followed by $35 billion of five-year notes on Wednesday and $29 billion of seven-year notes on Thursday.

"This week is the last trading week of the month, which should help supply conditions at the sales," said a fixed-income fund manager at a Japanese asset management firm.

"Even as risk appetite improves, I don't foresee any major selloff with the US fiscal cliff issue still looming over markets," he added.

Republicans in the US Congress remained at an impasse with Democrats on averting the steep tax increases and spending cuts, calling on the administration of President Barack Obama to detail long-term cuts to help solve the country's fiscal crisis.

The White House expressed doubts that "balanced" deficit reductions can be achieved merely by limiting tax breaks and cutting spending, as Republicans propose.

Yields on 10-year Treasuries rose to 1.674 percent on Tuesday in Asian trade from 1.661 percent in late US trade on Monday.

Yields on 30-year Treasuries rose to 2.811 percent from 2.797 percent on Monday.