U.S. Treasury prices fell on Wednesday as an upbeat report on the private labor market signaled faster U.S. economic growth and Federal Reserve released minutes, supporting the view the Fed would stay on course to wind down its bond purchases in 2014.
(Read more: Minutes show Fedcautious toward cutting QE)
Benchmark 10-year Treasury notes were down 15/32 in price, yielding 3.000 percent.
The Treasury auctioned $21 billion in 10-year notes at a high yield of 3.009 percent. The bid-to-cover ratio, an indicator of demand,was 2.68. The Treasury will complete this week's debt offering on Thursday with a $13 billion sale of 30-year bonds.
The encouraging jobs news spurred selling in government bonds.
The market's losses were limited with benchmark yields holding below 3 percent by the Fed's planned purchase of long-dated Treasuries under the third round of its quantitative easing (QE3) program.