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US Treasurys slip, 2-year yield hits 2008 highs after industrial production beats expectations

U.S. government debtyields rose Wednesday after industrial production data beat Wall Street expectations.

The yield on the benchmark 2-year Treasury note hit 2.0431 percent, its highest level since Sept. 2008, when it yielded as high as 2.128 percent.

The yield on the benchmark 10-year Treasury note was higher at around 2.565 percent at 2:12 p.m. ET, while the yield on the 30-year Treasury bond was slightly lower at 2.832 percent. Bond yields move inversely to prices.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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Data was of importance during Wednesday trade as an uptick in utility output carried U.S. industrial production higher. U.S. industrial production rose 0.9 percent in December versus expectations of a 0.4 percent increase.

The Federal Reserve's so-called Beige Book revealed that the central bank believes the U.S. economy and inflation are expanding. Multiple Fed districts documented increases in manufacturing and construction, while the body remains optimistic that latent pricing will rise in 2018.

Bonds have been of key importance recently, after big swings in U.S. Treasury yields and news surrounding China.

Last Wednesday, Bloomberg reported, citing people familiar with the matter, that officials in Beijing had recommended that China's government lowers — or even potentially ceases — its buying of U.S. sovereign debt. China's currency regulator has since dismissed the report, which helped ease sentiment for investors across many markets.

Markets remain on edge, as concerns over a possible government shutdown weighs on sentiment. By the end of Friday, Congress has to pass a spending bill in order to prevent a government shutdown; however, Democrats and Republicans remain at odds over an immigration bill that the Democratic Party wants to pass.

—CNBC's Fred Imbert contributed to this report