Treasury yields climbed higher on Wednesday as investors fled safe bonds into risk assets on increased hopes for a coronavirus vaccine.
Rates turned higher after Moderna, a biotech firm, said that its potential vaccine to prevent Covid-19 delivered a solid immune response in an early-stage human trial among all 45 patients.
The news came as the country deals with a resurgence in new coronavirus cases in some states. California, Texas Florida and others have had to roll back reopening measures as cases continue to climb.
Confirmed cases in the U.S. total more than 3.4 million and deaths have surpassed 136,000, according to Johns Hopkins University data.
The stock market rallied on Wednesday following the positive vaccine news with the S&P 500 rising more than 1%.
The Federal Reserve's Beige Book report on Wednesday showed business activity picked up through the beginning of July as the economy began to reopen, but activity still remains below pre-pandemic levels.
— CNBC's Silvia Amaro contributed reporting.