U.S. sovereign bond prices were mostly lower on Wednesday, pushing yields higher after Fed Chair Janet Yellen said December would be a "live possibility" for a rate hike depending on the data.
Yields have climbed steadily since Yellen kept rates on hold last week, but hinted that a hike could come by the end of the year.
According to the CME Group, the probability of a Fed rate hike next month increased to about 60 percent after Yellen's testimony.
Investors also took in fresh supply after the Treasury Department auctioned $26 billion in two-year notes at a high yield of 0.824 percent.
The bid-to-cover ratio, an indicator of demand, was 3.01, below a recent average of 3.37.
Indirect bidders, which include major central banks, were awarded 40 percent, below a recent average of 46 percent. Direct bidders, which include domestic money managers, brought 11 percent, below a recent average of 14 percent.