NEW YORK (MarketWatch) -- The Treasury Department sold $35 billion in 5-year notes TMUBMUSD05Y, 0.278% on Tuesday at a yield of 0.937%, the lowest level on record and below where traders expected the sale to come. Bidders offered to buy 3.15 times the amount of debt sold, the highest since May and above the average of 2.82 times at the last four auctions. Indirect bidders, a group which includes foreign central banks, bought 45.3%, versus an average of 43.5% of recent sales. Direct bidders, a class which includes domestic money managers, purchased another 9.6% compared to 13.2% on average. After the auction, the broader bond market erased losses. Yields on 10-year notes TMUBMUSD10Y, 0.695% , which moves inversely to prices, were little changed at 1.96% after trading near 1.98% before the auction.