The 10-year Treasury yield rose on Wednesday as investors hoped for progress on a debt ceiling deal.
The yield on the 10-year Treasury ticked higher by more than 2 basis points at 3.577%. Meanwhile, the 2-year Treasury yield last surged 8 basis points at 4.156%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
Negotiations about raising the debt ceiling continued, with participants last saying progress was being made. On Wednesday morning, President Joe Biden said that he and the other lawmakers had a "productive" meeting. A solution must be found before June 1, or lawmakers risk the U.S. defaulting on its debt obligations.
"I'm confident that we'll get the agreement on the budget, that America will not default," Biden said.
Elsewhere, investors weighed what could be next for Federal Reserve interest rate policy. Investors had been hoping for rates to be cut later this year off the back of data that indicated an easing of inflationary pressures.
On Tuesday, Cleveland Fed President Loretta Mester said that she does not believe the central bank has reached a point at which rates can be held steady and needed to stick to its current approach as inflation remained sticky.