US bonds slip as safe-haven bid continues to wane

U.S. sovereign bond yields built on this week's gains Wednesday as demand waned for safe haven assets prompted by the Brexit vote.

Benchmark 10-year Treasury notes fell to yield 1.5784 percent on Wednesday, up from a close of 1.558 percent in the previous trading session. Bond yields move inversely to prices.

Thirty-year bonds fell to yield 2.296 percent on Wednesday, just shy of the 2.274 percent at Tuesday's close.

US Treasury yields

U.S. Treasurys

The 10-year Treasury yield has rebounded by around 25 basis points since hitting a low around 1.3 percent earlier this month, according to Capital Economics.

"The rebound appears to have reflected both a reassessment of the outlook for the federal funds rate in the wake of June's healthier U.S. employment report and unwinding of the extra demand for safe-havens prompted by the U.K.'s vote for Brexit," John Higgins, chief markets economist at Capital Economics, said in a report on Wednesday.

German bunds — another perceived safe-haven asset class — also fell on Wednesday.

WTI crude futures for August crept lower early on Wednesday, as inventories fell by 2.3M barrels.

The U.S. dollar index traded higher against a basket of currencies on Wednesday at 97.18, up from levels around 96 last week. The currency has gained after strong U.S. economic data, particularly relative to other major economies.

Why are bond yields low while stocks grind higher?

The day will be another busy one for U.S. second-quarter earnings, with results due from American Express, eBay, Intel, Qualcomm, and Mattel among others.

According to Thomson Reuters, 64 percent of companies that had reported as of Tuesday morning topped earnings estimates. That compares to a long-term average of 63 percent over the past 22 years.

—With contribution from CNBC's Patti Domm. Follow CNBC International on Twitter and Facebook.