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Treasurys turn positive after 10-yr note sale

Bonds swung higher on Wednesday after the U.S. government's auction of 10-year Treasury notes, the second of three debt auctions this week.

The Treasury Department auctioned $24 billion in 10-year notes at a high yield of 2.000 percent. The bid-to-cover ratio, an indicator of demand, was 2.62, compared to a recent average of 2.70.

Indirect bidders, which include major central banks, were awarded 59.5 percent, above the 46 percent average.

Direct bidders, which includes domestic money managers, brought 12.7 percent, versus a recent average of 13 percent.

The 10-year benchmark Treasury note yield was at 1.985 percent after closing at 1.991 percent on Tuesday, having touched 2 percent for the first time in a month earlier in the session Tuesday. It was at 2.013 before the auction.

Thirty-year bond yields rose to trade at 2.60 percent, after closing at 2.572 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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JOLTS job data on Tuesday reinforced arguments that the labor market is thriving, pushing forward investors' rate-hike expectations. Job openings rose 181,000 in December to 5.03 million, the most since January 2001, from a revised 4.85 million the month before, the Labor Department reported.

On Tuesday, the Treasury sold $24 billion of three-year notes at a yield of 1.050 percent according to Reuters.

In Europe, a crucial meeting of European finance ministers is scheduled to discuss Greece's soon-to-end bailout program.

Greek Finance Minister Yanis Varoufakis is due to meet with other euro zone finance ministers at 11:30 a.m. ET Wednesday and is expected to unveil new reform proposals and an overhauled bailout plan.

Varoufakis is also expected to ask for a "bridge program" to cover the government's funding needs while a new debt pact is agreed.

On the data front it is set to be a quiet day, aside from the release of the monthly Federal Budget statement at 2:00 p.m. ET.