US Treasurys mixed before Beige Book

U.S. sovereign bond prices were mixed Wednesday after of the release of the Federal Reserve's Beige Book.

The yield on the 10-year Treasury note was about flat at 1.847 percent, while the yield on the 30-year Treasury bond fell to 2.619 percent. Two-year yields, however, rose to trade at 0.903 percent.

Inflation pressures grew slightly across most of the United States from April to mid-May, the Fed said on Wednesday in a report that also pointed to rising labor costs for American companies. The Beige Book, a collection of anecdotal information from business contacts nationwide, found that labor markets appeared to be tightening despite "modest" job growth.

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ISM manufacturing data, came in at 51.3, above the forecast 50.3, compared to 50.8 a month earlier.

U.S. construction spending recorded its biggest decline in more than five years in April as outlays fell broadly, which could prompt economists to lower their second-quarter growth estimates.

Construction spending tumbled 1.8 percent after an upwardly revised 1.5 percent jump in March, the Commerce Department said on Wednesday. April's drop was the largest since January 2011.

Vehicle sales, to be released later Wednesday, are expected to total 17.4 million for the month of May.

No major Treasury auctions are expected.

— Reuters contributed to this report.