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Bond yields higher after Fed’s Beige Book

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Treasury yields were higher on Wednesday after the Federal Reserve's Beige Book showed U.S. economic activity continued to expand.

Yields on benchmark 10-year Treasury notes were up 2 basis points at 2.175 percent. Longer-dated debt yields also rose, with 30-year Treasury bond yields up 3 basis points at 2.946 percent. When a bond's yield fall, the price rises.

"Respondents in most sectors across Districts expected growth to continue at its recent pace, but the Kansas City report cited more mixed expectations," the report stated.

Manufacturing activity was "mostly positive," though New York and Kansas City both reported declines. Retail sales "continued to expand" in most districts, while real estate reports "were mostly positive," according to the Fed.

U.S. sovereign bonds traded flat earlier after the release of three U.S. data points.

Companies added 190,000 jobs to close out the summer, a number that was better than July's downward-revised 177,000 and below anticipation for 201,000 new positions, ADP said.

The data is often referred to as a rough draft for Friday's all-important job's report.

Read MoreWall Street set to bounce after brutal start to the month

Second quarter U.S. productivity rose 3.3 percent, above the expected 2.8 percent rise and July's factory orders data showed a 0.4 percent rise versus a 0.9 percent estimate.

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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China growth worries are likely to remain in focus, but amid the numerous data releases, attention is expected to return to whether the Federal Reserve will raise interest rates this month.

On Tuesday, the major U.S. stock market averages ended in correction territory, down nearly 3 percent in their third-largest daily decline for 2015. Stocks failed an attempt to cut losses in choppy trade prior to the close. Weakness in China and poor U.S. manufacturing data released Tuesday also weighed on sentiment, fueling safe haven buying of bonds.

Analysts attributed some of Tuesday's declines to a sharp reversal in oil prices. Weekly crude inventories from the U.S. Energy Information Administration at 10:30 a.m., ET, Wednesday, could provide fresh direction for the oil market and are in focus.

WTI crude oil was down 77 cents or 1.7 percent at around 7:50 a.m. ET, having snapped a strong three-day rally to settle down 7.7 percent at $45.41 a barrel on Tuesday. Brent crude was down 55 cents at $49.01 per barrel after a larger-than-expected increase inventories reported by the American Petroleum Institute Tuesday.

—CNBC's Jeff Cox contributed to this report.