U.S. Treasury yields held lower Wednesday after the Federal Reserve kept interest rates unchanged.
Benchmark 10-year note yields traded at 1.5943 percent after the statement's release, while two-year note yields fell to session lows, before trading at 0.6736 percent. Thirty-year note yields last traded at 2.4241percent.
U.S. sovereign bond prices were trading higher ahead of the Federal Reserve's eagerly awaited June interest rate decision.
At about 12:50 p.m. ET, 10-year yields traded at 1.6028 percent, while two-year note yields were at 0.7219 percent.
Treasurys
Rate rise expectations have dwindled significantly in recent weeks after non-farm payrolls data showed worse-than-expected jobs growth in May. However, a number of FOMC members have made relatively hawkish statements on the state of the U.S. economy in the run-up to the June meeting.
Producer price index data for May showed a 0.4 percent increase, while economists had forecast a 0.3 percent gain.
U.S. industrial production fell more than expected in May on a decline in utilities output and auto manufacturing, the Federal Reserve said on Wednesday, a sign that the economy may be losing some steam in the second quarter.
Industrial output declined 0.4 percent last month after a downwardly revised 0.6 percent increase in April.
Investors will also eye Treasury International Capital (TIC) data for April, due out at 4:00 p.m. ET, which measures the flow of assets including Treasury securities, corporate bonds and equities to and from the U.S.
No major Treasury auctions are expected.
—Reuters contributed to this report.
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