Treasury yields turned higher Wednesday after the Federal Reserve raised rates and forecast three rate hikes in 2017.
The , the most sensitive to Fed rate hikes, topped 1.20 percent following the announcement to near 1.25 percent, its highest since August 2009. Yields move inversely to price.
The yield on the benchmark 10-year Treasury notes climbed above 2.5 percent, while the yield on the 30-year Treasury bond neared 3.15 percent as of 3:42 p.m., ET.
"The point is there wasn't consensus about what would happen next. Now the consensus is coalescing around the more rapid rise," said Bryce Doty, senior fixed income manager with Sit Investment Associate. "It used to be lower for longer. They're (saying) there could actually be three rate hikes next year."
Treasurys
U.S. stocks struggled for gains after the Fed rates decision.
On the data front, the Producer Price Index rose 0.4 percent in November, above the expected 0.1 percent increase. Meanwhile, November retail sales rose less than expected as households cut back on purchases of motor vehicles. Industrial production fell 0.4 percent. Business inventories posted their largest decline in 11 months, falling 0.2 percent.
In oil markets, U.S. crude for January delivery fell more than 2 percent to below $52 a barrel, after the Energy Information Administration reported a greater-than-expected drawdown of 2.6 million barrels.
Concerns about an oil glut were sparked by rising U.S. crude inventories in storage and OPEC saying output cuts must be implemented to avoid the prospect of a growing surplus.
—Reuters and CNBC's Evelyn Cheng contributed to this report.