Bond yields ripped higher ahead of the Fed's Thursday meeting at which the central bank could raise rates for the first time in nine years.
While there was some talk the move in the short end of the Treasury curve was the result of speculation about the Fed raising rates, fed funds futures reflected just a 28 percent chance of a September hike.
"It's hard for me to jump all over this as a September rate hike thing," said John Briggs, head of strategy at RBS. He said investors appear reluctant to make commitments ahead of the Fed meeting, and some have been sidelined.
Read MoreFed's rate hike still a close call