Treasuries rose on Tuesday after global stock markets plummeted a day earlier as investors fled to more secure government bonds.
Recent economic data has pointed to a slowing U.S. economy, causing concern among investors worldwide that the nation could enter into recession, lowering demand for imports.
On Friday, investors shrugged off a proposal by President George Bush to boost the economy with tax incentives for businesses and rebates for individuals.
Japan's Nikkei fell 414.11 points to 12,911.83 on Tuesday.
Two year notes dropped 18 basis points to 2.173 percent rising 11/32 in price as expectations of a Fed rate cut increase of 0.75 percent increase.
The ten year note treasury yield fell 10 points to 3.532 percent.