A U.S. Treasury auction of short-term debt Tuesday showed signs of steady demand, amid a global selloff of government debt that sharply increased borrowing costs in developed countries.

The Treasury's weekly auction sold $102 billion in six-week bills, with a high rate of 3.645%. That compared to a market yield of 3.696% at the time, according to LSEG, in a sign of strong demand overall.

The bid-to-cover ratio, a measure of investor demand, was 2.97, up from 2.93 in last week's auction.

The Treasury has been offering nearly $100 billion in recent six-week bill auctions as it increases issuance of shorter-term debt. Investors have been snatching up the securities at yields between 3.35% and 3.7%.

Indirect bidders, a group that includes foreign institutional buyers, have been purchasing around 70% of the auctioned six-week bills. They acquired 65.5% at Tuesday's auction, indicating lower demand by foreigners this week.

In contrast, investors are demanding a much higher yield for long-term debt. In the most recent 30-year Treasury bond auction last week, the high yield cleared at 5.216%, the highest since 2001.