U.S. sovereign bond prices were lower on Wednesday after a number of U.S. Federal Reserve officials raised the prospect of further interest rate hikes this year and as investors digested the latest Fed minutes.
The yield (which has an inverse relationship to the price) on the benchmark 10-year Treasury note sat higher, at 1.8643 percent, after hitting its highest level in two weeks, while the yield on the 30-year Treasury bond was also higher, at 2.6715 percent.
The two-year yield continued its surge, hitting its highest level since March 16, and was last trading at 0.9040 percent.
Lower rates and a dovish Fed have helped Treasurys to rally in recent years and any reversal of that stance is likely to be detrimental to the price of fixed income assets. Yields ticked higher Wednesday as investors shunned the asset class.