The 10-year U.S. Treasury yield topped the 1% mark, as traders eyed incoming results from the Georgia runoff elections, determining which party has control of the Senate.
Treasury yields jumped as NBC News projections showed Democrat Rev. Raphael Warnock is set to win the Georgia U.S. Senate special election runoff, flipping a Republican seat.
The senior pastor at Ebenezer Baptist Church will defeat incumbent Republican Kelly Loeffler. Warnock's projected win brings the Democrats closer to controlling both the Senate and the House, making it easier for Democrat President-elect Joe Biden to push forward with his legislative agenda once in the White House.
Democrat Jon Ossoff leads against Republican David Perdue in Georgia's other Senate seat in the runoff contest, with 98% of the expected vote counted. NBC News has not projected a winner in that race as of Wednesday morning.
If Ossoff wins the seat, this would result in a 50-50 seat tie between the two parties in the upper chamber, giving Vice President-elect Kamala Harris the tie-breaking vote.
December ADP employment change data is due out at 8:15 a.m. ET, followed by last month's figures from Markit's composite and services purchasing managers' index at 9:45 a.m. ET. Month-on-month factory orders data for November is expected to come out at 10 a.m. ET.
Weekly EIA stock change data for gasoline, crude oil, Cushing crude oil and distillate is due to be released at 10:30 a.m. ET.
Minutes from the U.S. central bank's last Federal Open Market Committee meeting are set to be published at 2 p.m. ET.
Auctions will be held Wednesday for $25 billion of 105-day bills and $30 billion of 154-day bills.
— CNBC's Hannah Miao contributed to this report.