The Treasury Department has auctioned $35 billion of five-year Treasury debt at a record-low yield, reflecting strong demand for lower-risk investments.

The notes were priced to yield 1.015 percent, slightly lower than market yield at the time of auction. That indicates strong demand for the notes. Treasury prices and their yields move in opposite directions.

In other trading, 10- and 30-year Treasury prices rose as U.S. stocks gave up an early rally. Their yields edged down as cash flowed into government bonds.

At 1:55 p.m., the benchmark 10-year note yielded 2 percent, from 1.99 percent late Tuesday. It rose earlier to 2.06 percent as optimism about Europe's efforts to address its debt crisis drew investors to riskier trades.