"The core PCE inflation data for November will be released today and given that the Federal Open Market Committee (FOMC) is now monitoring 'actual' inflation readings as well as expected inflation means the core PCE inflation data is now top-tier data for the markets. Price action in the rates market certainly suggests that the festive vacation period has begun with liquidity and volatility both on the decline," said European head of global markets research at Bank of Tokyo-Mitsubishi UFJ, Derek Halpenny.
Oil prices remained in focus for traders Wednesday, as U.S. crude prices rose to a premium over internationally traded Brent on Wednesday.
Front-month U.S. West Texas Intermediate (WTI) crude futures were trading at $37.36 per barrel on Wednesday, up $1.22 from their last settlement.
Brent crude earlier traded as low as $36.28 a barrel, flipping WTI from a long-standing discount into a slight premium over the international benchmark for the first time since November 2014, according to Reuters. Both continued to trade around parity throughout the morning session.
Crude inventories fell by 3.6 million barrels last week to 486.7 million, compared with analysts' expectations polled by Reuters for an increase of 1.1 million barrels. Official inventory data will be published later on Wednesday.