U.S. Treasurys extended earlier losses on Thursday after foreign ministers in Geneva said they agreed on initial 'concrete steps' to de-escalate tensions in Ukraine.
"We worked hard and we worked in good faith in order to try and narrow our real differences, some of them significant," U.S. Secretary of State John Kerry said in a news conference after the agreement was reached.
Benchmark 10-year notes were last down 22/32 in price to yield 2.71 percent, up from 2.64 percent late on Wednesday, while the 30-year bond dropped 1 4/32 in price to yield 3.51 percent, a session high.
The yields have risen from one-and-a-half-month lows of 2.60 percent on Tuesday, when concerns about escalating tension in Ukraine sparked safety buying and a weak New York manufacturing survey raised fears over the strength of the U.S. recovery.
Prior to the announcement, the Philadelphia Federal Reserve Bank said its business activity index rose to 16.6 from 9.0 in March, topping economists' expectations for 10.0, according to a Reuters poll.