Treasury yields fell to session lows on Wednesday after the Federal Reserve released the minutes of its latest policy meeting, saying conditions for a rate increase were "approaching," but not at hand.
Policymakers at the U.S. central bank said conditions hadn't been achieved yet for the first policy tightening in nearly 10 years, due primarily to inflation that is not yet moving toward the necessary conditions.
The yield on the benchmark 10-year Treasury note declined 6 basis points to a session low of 2.13 percent. It stood as high as 2.23 percent earlier in the session. Short-term maturities were also at session lows.
The yield on the 30-year bond was the lease affected by the decision. It stood at 2.84 percent and was little changed on the day.
Following the announcement, RBS said its calculation of market pricing suggests traders are betting that the Fed's first full rate hike will occur in January.
Expectations for a rate increase in September fell to 36 percent. The odds for a December rate hike declined to 85 percent, from 100 percent before the minutes were released.
Earlier on Wednesday, U.S. data showed that consumer prices rose slightly in July, suggesting inflation pressures were stabilizing enough to support expectations of an interest rate hike this year.
The timing of the U.S. central bank's first rate hike in nine years has been a constant source of debate in the markets, as traders await the final pieces of economic data the Fed will take to its September rate meeting.
The market will also be on the lookout for any Fed speakers, particularly after recent comments from Atlanta Fed President Dennis Lockhart signaled a willingness for the Fed to move.
"There is the probability that the minutes are likely to be a little stale given recent events in China, and the volatility seen there, but nonetheless they should still give us an insight into the musings of those on the committee about the effects of overseas events might have on their deliberations," said the chief market analyst at CMC Markets, Michael Hewson.
—CNBC staff and Reuters contributed to this report.