U.S. government debt prices fell on Wednesday as investors digested strong employment data and eyed the 10-year note auction.
The Treasury Department auctioned $20 billion in 10-year notes at a high yield of 2.56 percent. The bid-to-cover ratio, an indicator of demand, was 2.66, well above the recent 10-auction average of 2.45.
Indirect bidders, which include major central banks, were awarded 65.76 percent, slightly above a recent average of 64 percent. Direct bidders, which includes domestic money managers, bought 15.69 percent, more than double of a 7 percent recent average.
The yield at the 10-year note auction is the highest since July 2014.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.556 percent, while the yield on the 30-year Treasury bond was also higher at 3.145 percent.
The yield on two-year Treasury notes climbed to 1.354 percent.