US Treasurys trade flat after Fed releases minutes

U.S. government debt prices were flat on Wednesday as investors poured over the Federal Reserve's June meeting minutes.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was down slightly at 2.332 percent, while the yield on the 30-year Treasury bond yield was slightly lower at 2.858 percent. The yield on the 2-year Treasury bond was unchanged.

Before the release of the minutes, the 2-year Treasury was trading at 1.414 percent and the 30-year Treasury was trading at 2.856 percent.

US 10-YR
US 30-YR

"Fed members went back and forth on the state of the economy with some agreeing that the drop in the unemployment rate is tinder for eventual inflation while others were less worried," wrote The Lindsey Group's Chief Market Analyst Peter Bookvar in an emailed statement.

On the data front, Wednesday saw factory orders for May fall by 0.8 percent, higher than expected 0.4 percent decline.

The much-anticipated release of last month's FOMC minutes is set for 2 p.m.

The minutes are from the June 14 meeting when the FOMC raised rates for a second time this year and revealed details on how it intends to gradually begin paring back its more than $4.5 trillion balance sheet. The markets have doubted the Fed will hike rates for a third time this year, giving just about 50 percent odds for a September rate rise.

Meantime, in oil markets, prices dropped on Wednesday, as another rise in OPEC supplies appeared to limit gains while geopolitical tensions in the Middle East and the Korean peninsula put a floor under prices.

Entering Wednesday's session, WTI prices had risen nearly 11 percent from a 10-month closing low over the course of eight sessions.

U.S. crude was around $45.05 a barrel, down 4.29 percent.

—CNBC's Patti Domm contributed to this report.