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US Treasury yields trim losses amid Fed Beige book

U.S. government debt prices slipped on Wednesday after the Federal Reserve said U.S. economic growth has been "slight" and "steady."

Yields on the benchmark 10-year Treasury note rose to 1.8943 percent from 1.8761 percent while the yield on the 30-year Treasury bond rose to 2.5493 percent from 2.5259 percent.

Federal Reserve officials painted a mostly uninspiring picture in their latest economic assessment.

Overall, the Fed's 12 districts did report strength in real estate and housing. However, manufacturing in recent days has been "weak" and retail sales "mixed," according to the latest Beige Book account.

Earlier, U.S. Treasury yields traded lower amid a host of economic data and after weaker than expected retail sales.

Industrial production for March showed a greater-than-expected decline of 0.6 percent, following a slight gain in February. Capacity utilization also came in slightly below the previous month.

Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.
Frank Polich | Reuters

Mortgage applications decreased 2.3 percent from the prior week as interest rates ticked up slightly, according to the Mortgage Bankers Association.

Meanwhile, the Empire Manufacturing survey showed growth in New York State unexpectedly contracted in April, weakening for a third straight month as the pace of new orders fell to a multi-year low, a New York Federal Reserve survey showed on Wednesday. The index showed a decline of 1.19 in April versus March's 6.90 read.

Investors are also watching 10-year German Bunds, as yields continue to test new lows, edging closer to negative territory.They last traded at 0.1050 percent.

U.S. Markets Overview: Treasurys chart

Wolfgang Schauble, Germany's finance minister, said Wednesday Greece's new government has "damaged" the country's improving economy, Reuters reported.

He also said he does not expect a solution to the country's financial woes to be reached in the next few weeks and that the main problem with Greece's economy is not its loans, but rather its lack of economic competitiveness.

Read More Economic growth 'slight': Fed

U.S. crude closed up $3.10, or 5.82 percent, at $56.39 per barrel, its highest settlement of the year.

—CNBC's Fred Imbert and Jeff Cox contributed to this report.