U.S. government debt prices were lower on Wednesday as riskier assets regained their appeal, while investors digested a Treasury Department sale.
The Treasury Department auctioned $34 billion in five-year notes at a high yield of 1.988 percent.
The bid-to-cover ratio, an indicator of demand, was 2.38.
Indirect bidders, which include major central banks, were awarded 63.3 percent. Direct bidders, which includes domestic money managers, bought 4.6 percent.
"The 5 yr note auction was on the softer side," said Peter Boockvar, chief market analyst at The Lindsey Group, in a note. "With the auction weakness with respect to the yield on top of an already weak Treasury market today has yields across the curve at the (high) of the day in response."
The five-year Treasury note yield traded around 1.992 percent following the sale.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.525 percent, while the yield on the 30-year Treasury bond was also higher at 3.102 percent.