Strong manufacturing data and reports that an agreement to lower Greece's debt burden could be wrapped up soon pushed Treasury prices lower Wednesday.
U.S. manufacturing activity rose to the highest level since last June, powered by new orders and exports as well as a rise in backlogs. A larger backlog implies manufacturers may be forced to increase their production.
Greece and the International Monetary Fund said negotiations between Greece and its creditors should be finished within days. An agreement is expected to trim Greece's debts and help the country avoid a default next month.
The encouraging news out of the U.S. and Europe helped lure money out of the Treasury market, where the world's traders hide when they're worried about a crisis.
The price of the 10-year Treasury note fell 31.2 cents for every $100 invested. The drop in price lifted the 10-year yield to 1.83 percent from 1.79 percent late Tuesday. Bond prices and their yields move in opposite directions.
The price of the 30-year bond fell $1.21 for every $100. Its yield rose to 3.00 percent from 2.94 percent. The yield on the two-year note was unchanged at 0.22 percent.
In the market for short-term bills, the three-month T-bill paid a yield of 0.06 percent.