Treasury yields remain lower after US and China sign 'phase one' trade deal

Treasury yields fell on Wednesday despite the signing of an interim trade deal between the world's two largest economies.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, dipped two basis points to around 1.794%, while the yield on the 30-year Treasury bond was also lower at around 2.249%.

The U.S. and China signed the so-called "phase one" trade deal on Wednesday. The deal addresses intellectual property theft and forced technology transfers in exchange for Chinese market access. It also details a $200 billion increase in Chinese purchases of U.S. goods over two years.

Still, the White House has said it will leave tariffs on another $250 billion in Chinese products in place for now. On Wednesday, Treasury Secretary Steven Mnuchin said a second phase of the agreement that the U.S. hopes to strike could include more tariff relief.

On the data front, the producer price index (PPI) for December increased 0.1%, lowered than a gain of 0.2% expected, according to the Bureau of Labor Statistics. It measures the change in prices of goods and services from the perspective of the producer.

The number came after a modest rise in U.S. consumer prices in December, which could allow the Federal Reserve to keep interest rates unchanged at least through this year.

Philadelphia Fed President Patrick Harker will comment on monetary policy at an event in New York slightly later in the session.

There are no major U.S. Treasury auctions scheduled on Wednesday.

— CNBC's Jesse Pound contributed to this report.