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.