(RTTNews) - After ending the previous session roughly flat, treasuries moved to the downside over the course of the trading day on Wednesday.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 2.7 basis points to 4.079 percent.
The increase on the day came after the ten-year yield edged down to its lowest closing level in well over two months on Tuesday.
The pullback by treasuries came following the release of some upbeat U.S. economic data, including a report from the Federal Reserve showing industrial production increased by more than expected in the month of January.
The Fed said industrial production grew by 0.7 percent in January after rising by a downwardly revised 0.2 percent in December.
Economists had expected industrial production to climb by 0.4 percent, matching the increase originally reported for the previous month.
A separate report released by the Commerce Department showed a sharp increase in new residential construction in the U.S. in the month of December.
Treasuries saw continued weakness following the release of the minutes of the Fed's latest monetary policy meeting, which revealed officials remain divided about the outlook for interest rates.
The minutes of the Fed's January 27-28 meeting said several participants felt further rate cuts would likely be appropriate if inflation were to decline in line with their expectations.
However, others believed it would likely be appropriate to leave rates unchanged for "some time" as the Fed carefully assesses incoming data.
A number of these participants judged that additional policy easing may not be warranted until there was clear indication that the progress of disinflation was firmly back on track, the Fed said.
The Fed noted several participants even supported a two-sided description of the outlook for rates, reflecting the possibility that rate increases could be appropriate if inflation remains at above-target levels.
Trading on Thursday may be impacted by reaction to a slew of U.S. economic data, including reports on weekly jobless claims, the trade deficit and pending home sales.
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