Treasury yields held steady on Wednesday as quiet trading in the bond market resumed.
"The 10-year yield is sitting just 3 basis points from last week's low of 1.53%, and if that support is broken that opens up a run to 1.50% and possibly lower," wrote Tom Essaye, editor of the Sevens Report.
"Regardless of the move in the short term, unless we become convinced that the economic recovery is about to be materially delayed or derailed, the trend in yields remains decidedly higher on a medium- and longer-term time frame," he added. "We continue to view any decline in the 10-year yield much beyond 1.50% as an opportunity to get medium- and long-term exposure to assets that rise when yields rise."
The Bank of Canada kept its key overnight interest rate unchanged at a record low as expected on Wednesday and said it would start paring back its weekly net purchases of government of Canada bonds.
The central bank vowed to keep rates at historic lows until the second half of 2022 when the economic activity rebound fully.
There are no major economic data releases due out Wednesday.
However, traders will have an eye on an auction for $24 billion of 20-year bonds on Wednesday, as a gauge of demand for longer-term government debt. An auction will also be held for $35 billion of 119-day bills.
— CNBC's Tom Franck and Yun Li contributed to this report.