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US Treasury yields slip after consumer confidence falls in December

U.S. government debt yields slipped on Wednesday, after consumer confidence slipped in the month of December and the yield curve continued to flatten.

The yield on the benchmark 10-year Treasury note ticked lower to 2.423 percent at 1:23 p.m. ET, while the yield on the 30-year Treasury bond was down at 2.753 percent. Bond yields move inversely to prices.

U.S. Markets Overview: Treasurys chart

Consumer confidence slipped in December, down from 17-year highs in November. The Conference Board's measure of consumer confidence declined to 122.1 in December, further than the 128.1 anticipated by economists polled by Reuters.

Home sales stalled in November after voracious climbs this fall, up 0.2 percent. The index was 0.8 percent higher compared to November 2016, the first annual gain since June.

The Treasury Department auctioned $34 billion in 5-year notes at a high yield of 2.245 percent. The bid-to-cover ratio, an indicator of demand, was 2.36. Indirect bidders, which include major central banks, were awarded 58.4 percent. Direct bidders, which includes domestic money managers, bought 7.9 percent.

Meanwhile, the yield on the 2-year German bund hit a high of -0.623 percent, its highest level since July 21, when the 2-year bind yielded as much as -0.619 percent.

German bonds moved in lockstep with in the United States, with the yield curve continuing to flatten as investors foresee rising benchmark rates in the near-term with latent inflation on a longer scale.

Commodities will also be of key importance to investors on Wednesday, after crude futures hit a more than two-year high on Tuesday. On Wednesday however, oil prices came under pressure, with WTI crude at $59.47.

Meantime, U.S. markets have been outperforming as of late as developments surrounding tax reform continue to emerge. Last Friday, President Donald Trump signed a $1.5 trillion tax bill in law, capping off a yearlong effort to cut tax rates for both individuals and companies.

No major speeches by the Federal Reserve are set to take place during the day's session.

—CNBC's Christina Wilkie and Chris Hayes contributed to this report