U.S. government debt prices were slightly lower on Wednesday after a Treasury Department sale that saw soft demand. Investors also digested the abrupt dismissal of FBI Director James Comey.
The Treasury Department auctioned $23 billion in 10-year notes at a high yield of 2.4 percent on Wednesday. The bid-to-cover ratio, an indicator of demand, was 2.33.
Indirect bidders, which include major central banks, were awarded 60.7 percent, the smallest since December. Direct bidders, which includes domestic money managers, bought 5.1 percent.
The yield on the benchmark 10-year Treasury note cut losses after the sale, last trading at 2.414 percent. The yield had traded at 2.392 percent about 10 minutes before the auction results were released.
"The auction was softer than we expected and seasonals were of little help. Overall stats were soft, but not unbelievably so. Again highlights how the auctions are priced by the marginal buyer," Aaron Kohli, interest rates strategist at BMO Capital Markets, said in a note.