Treasury Dept auctions $28 billion of 7-year notes at a high yield of 1.389%

U.S. sovereign bond prices turned lower after Reuters reported that OPEC may have reached a deal to implement an oil production limit in November.

The yield on the benchmark U.S. 10-year note was last near 1.5686 percent, while the yield on thirty-year notes was slightly higher at about 2.2895 percent. Bond yields move inversely to prices.

Earlier, the Treasury Department auctioned $28 billion in seven-year notes at a high yield of 1.389 percent on Wednesday.

The bid-to-cover ratio, an indicator of demand, was 2.47, slightly below a recent average of 2.49

Treasury yields

U.S. Treasurys

Indirect bidders, which include major central banks, were awarded 59.4 percent, just below a recent average of 60 percent. Direct bidders, which include domestic money managers, bought 10.5 percent, below a recent average of 13 percent.

The yield on the seven-year note last sat near 1.3975 percent.

This follows an auction of on Tuesday at a high yield of 1.129 percent.

Yellen to speak

Fed Chair Janet Yellen spoke before the Committee on Financial Services on Wednesday about banking supervision and regulation. She also said that the Federal Reserve does not have a "fixed timetable" for interest rate moves.

Five other Fed officials will make public appearances on Wednesday, namely, Minneapolis Fed President Neel Kashkari, St. Louis Fed President James Bullard, Chicago Fed President Charles Evans, Cleveland Fed President Loretta Mester and Kansas City Fed President Esther George.

Earlier on Wednesday, Kashkari said that the U.S. central bank can keep interest rates low for longer because even though the economy is creating jobs at a "pretty healthy clip," there are no signs of inflationary pressures.

Meanwhile, U.S. economic data released on Wednesday included monthly durable goods orders, which came in unchanged. The Mortgage Bankers Association also reported weekly mortgage applications fell by 0.7 percent.

The dollar index, which measures the greenback against a basket of currencies, continued to gain on Wednesday, trading around 95.44 at 3:23 p.m. ET.

The market for trading corporate bonds has dissolved: CEO
The market for trading corporate bonds has dissolved: CEO

Oil prices gained on Wednesday, after government data revealed an unexpected decline in U.S. commercial crude inventories fell by 1.9 million barrels. Analysts polled by Reuters had projected a 3 million barrel build.

U.S. bonds closed higher on Tuesday, boosted by the perceived stronger performance from Democratic candidate Hillary Clinton than Republican Donald Trump in the first U.S. presidential debate. A better-than-expected reading for U.S. consumer confidence also supported sentiment.

Follow CNBC International on Twitter and Facebook.