At around 12:39 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.031%, while the yield on the 30-year Treasury bond was also higher at around 2.553%.
Market focus is largely attuned to the U.S. central bank, after a report from the Wall Street Journal suggested the Fed was likely to cut rates by a quarter-point at the July 30-31 Federal Open Market Committee meeting.
Late last week, dovish comments by New York Fed President John Williams had boosted expectations the central bank could cut rates by 50 basis points. However, the New York Fed sought to clarify Williams' comments by saying his speech was not about policy action at the upcoming central bank meeting.
"Thus, the big question in assessing the odds of 25 vs 50 is: Does the FOMC currently judge economic performance on the ground, along with the outlook and the risks surrounding it, as probably necessitating an eventual 225 bp reduction in policy rates?" BMO Capital Markets economist Michael Gregory wrote.
"If yes, the case for a 50 bp rate cut now is compelling. But with Fed official after Fed official claiming the economy is in a 'good place,'" that may be less likely.
Global growth concerns and ongoing trade uncertainties could prompt the Fed to make further cuts over the coming months. Slower GDP growth in the euro zone and Asia have kept investors on-edge in recent months despite stronger performance in the U.S.