Treasury prices fell Wednesday after the Federal Reserve released minutes from its latest meeting which suggested that rates might start heading higher if the economy keeps improving.
The price of the 10-year note fell 53.1 cents Wednesday for every $100 invested. The higher price drove the yield up to 3.18 percent from 3.12 percent late Tuesday. Bond prices rise when their yields fall.
The Fed's policymakers noted last month that the U.S. economy is gradually improving. Their discussions centered around ways to reverse policies adopted during the recession that pumped billions of dollars into the economy.
Some members said the Fed might need to start increase interest rates this year to guard against inflation.
In response, the yield on the two-year note edged up to 0.56 percent from 0.52 percent.
In other trading, the price on the 30-year bond fell $1 for every $100 invested, sending its yield up to 4.29 percent from 4.23 percent.
The yield on the three-month T-bill rose to 0.03 percent from 0.01 percent. Its discount was 0.04 percent.